Strathcona Resources Ltd T.SCR

Inefficient market

[filefish]

At least for now, an inefficient market has been created for SCR shares:
Small public float 
Lack of Company financial information
No institutional trading
Tax loss selling
 

IMHO

[tylerreddick]

And who created this situation? Yes, it was the Watrous clowns.

[bobsomething]

How did they come up with the 30$ SCR price when it began trading in the first place?

[filefish]

Based on this summary, the implied value per share of SCR was about $40.00 Market cap 8.6 bil div by 214 mil proforma sh o/s = 40   Trading started at about $30.00/sh Per Pipestone / Strathcona press release: Transaction Overview Pursuant to the Transaction, Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as "Strathcona Resources Ltd

[bobsomething]

Thanks for the reminder. Yes, I rememer the market cap price was 40$. But why did it open at 30$ instead of 40$? I assume the initial 30$ SCR price was due to Pipe plunging from 2.72 to 1.97 (merger anouncement versus SCR start date). So, looks like everyone is waiting for the earnings report? Did Strathcona release it's actual revenue and earnings before the merger OR did they just give a

[uwebb429]

The exchange ratio was 0.067967. On Oct. 4th, the final day of trading for PIPE, it closed at $1.94.  $1.94 / 0.067967 = $28.54 On Oct. 5th, the first day of SCR trading, SCR closed at $29.96. Since that day, WCS oil has dropped almost 30% and SCR has dropped 25%. > Did Strathcona release it's actual revenue and earnings before the merger All of the relevant financial

[filefish]

uwebb427, thanks for summarizing the information and including the Pipestone / Strathcona vote documents. The financial statements, etc are as of 12/31/22, so already 10 months old. Of particular note on the link is the Balance sheet on page 307, Income statement on page 308 and hedge book on page 406. Will be interesting to see how the numbers carry forward to 9/30/23 + pro-forma Pipestone

[bobsomething]

Thanks for the pdf. I roughly calculated (guesstimate) a 2023 full year EPS. 1. Best case scenario if oil is trades over 85 for the rest of the year (and no unexpected expenses) 2023 Net Profit Strathcona Resources -  870 Million 2023 Net Profit Pipestone                   -   180 Million (Net Profit) 1050 Million/ 214,2 Million