SDE: Manipulation, Gross Undervaluation, High AECO There is a clear manipulation on SDE's stock price over the last months.
SDE is nat gas weighted with the strongest balance sheet (ZERO debt and cash) compared with all the other
indebted nat gas weighted names in Canada.
But SDE has
the lowest key metrics per flowing barrel and per annual cash flow among all the other indebted nat gas weighted names in Canada.
Specifically, debt-free SDE currently trades about CAD$14,000 per flowing barrel and just 3 times its annual cash flow for 2021. Dirt cheap. On top of this, AECO hit its highs in three years at CAD$3.82.
After all, SDE should trade now
well above CAD$10 to trade in line with the nat gas weighted peers in Canada. Nevertheless SDE has been flat at about CAD$5.60 with low volume and many SUSPICIOUS trades at closing.
And the outlook for nat gas is bright. This is from SA's news today:
U.S. natural gas skies to highest in two-and-a-half years
U.S. natural gas futures rose to their highest since late 2018 and up nearly 50% YTD, as analysts say traders are focused on a continued storage deficit and healthy exports of liquefied natural gas that seem to maintain a strong, consistent backstop to domestic demand.
Front-month futures (NG1:COM) settled +2% to $3.749/MMBtu, overcoming forecasts for slightly less hot weather and lower air conditioning demand over the next two weeks than previously expected.
ETFs: UNG, UGAZF, DGAZ, BOIL, FCG, KOLD, UNL
U.S. speculators last week increased their net long futures and options positions for a sixth week in a row to their highest since May 2017 on expectations U.S. exports would reach fresh record highs as global gas prices soar.
Meanwhile, the amount of gas in U.S. storage for the 2021-22 winter was nearly 7% below the five-year average for this time of year.