Spyglass Resources Corp SGLRF

House of shame nominees___ John and Tom

[eusdond]

John Wright and Tom Buchanan's Spyglass Resources Corp. (SGL) lost 12 cents to 84 cents on 1.72 million shares. It too released its third quarter financials after the close on Thursday, sending the stock down five cents to 96 cents on Friday, its first time below $1 since it was created through a three-way merger 19 months ago. It closed at $2.48 on its first day of trading. The merger was intended to create a company that was producing 18,000 barrels of oil equivalent a day and paying a monthly dividend of 2.25 cents. Instead, following one problem after another, the debt-laden company had to sell assets and eventually cut its dividend. It produced 13,518 barrels a day in the third quarter and may have to cut its dividend again; the 1.5-cent monthly payout yields a bountiful 21.4 per cent. The debt has stayed stubbornly around $300-million despite all the sales and cuts. Spyglass is working on further asset sales to reduce its debt, and says it will not provide 2015 guidance until it has completed its 2014 disposition program. Scotia Capital analyst William Lee figures that the company has three options: tread water with a cash-flow-supported budget; eliminate the dividend; or successfully sell more assets. "All three choices will likely see the stock continue to drift lower," wrote Mr. Lee, cutting his price target to 50 cents from $1. The analyst pressure continued today after TD Securities downgraded the stock to "reduce" from "hold," with a target of 60 cents.