in my scrambled mindSGY has been around since 1998!!!
Paul may have sold one or two companies previously, but this baby had lots of oppotunities
to be sold between 2011-2014, when oil was trading roughly at $100 for all that time...
I don't know the history of SGY from 1998 to now but suffice to say, it has been volatile as per oil...
Nor do I know how much compensation has been distributed in the form of dividends during that time...
The company is where it is because of mergers: ALL OF THEM AT THE WRONG TIME...
That is to say, a crash in the price of oil happened after every acquisition...Then management spends all its time in survival mode when it should be thinking of taking advantage of the low oil prices/low oil stock prices to grow... I would prefer that they buy land and explore rather than taking over another oil company...When you acquire a company, not just an oil company, you acquire warts and all....
My preference is to pay off the debt and distribute those dividends. Buying back stock is not the most efficient use of capital. The buybacks should have happened at much lower prices had SGY not have so much debt...
I expect a pop in the price once we know what the dividend is going to be and if it is going to be
monthly or quarterly.
The $25 price will probably be reached but not till late 2024: unless SGY gets a takeover bid.
It will not be CPG, imho.They have an over hang of 40m/s being held by Shell. Who knows what
price they would like to get for them...
Some of the insiders have done very well even at this price, with the stock purchase plan, but you
wonder, or at least I wonder why they didn't buy even more during those dark days especially loading up in their TSFA account instead of the RRSP...
I have a futures chart going out to 2033 with the price of oil quoted just under $68!!! That means
that any dividend is guaranteed till 2033...
No, it is not $103 or 150 even 200, but these numbers can be fleeting. We can wake up one morning and the price of oil quoted at 200 but later during the day or even the next day or two, oil could go down to 150 or even lower.
So lets stick to our knitting and pump out those dividends and pay off the debt, then have some money in the kitty to buy back undervalued stock when the opportunity arises...
ALL COMPANIES should only be allowed to buy back stock ONLY when a stock is making a NEW
LOW not a new high...
These are my thoughts
What say you?
ps
I also am in favour of a $10 bond stock. That way, institutions wont be able to cripple us when times are tough. We would be able to suspend the interest and of course the dividend payments and the interest payments woould be cumulative of course...
I would buy a bond stock.