RE:Forget about the dividend this year!Kherson
I don't know how much you know about wtic, but from your post I would say that you
don't know much!!!
I could be more describtive, but why bother...
First off, as I have mentioned a couple of weeks ago, the futures price for wtic as far as 2033
was 68$s US !!!
At that price, SGY can still reduce their debt, pay a dividend and if the market doesn't like it,
because the price of the stock goes down, can still find a few shekels to buy back cheap shares...
They are going to increase their production, hopefully.
If SGY does not resume its dividend, the stock will be clipped 2-3 $s and the upside will be limited.
On top of that, you are talking about a $4-5 stock which will make SGY a takeover candidate.
The bid will be about $8-9...
Price on Friday closed at 10...
Be careful what you hope for...
Anyway, Paul is on record of wanting to resume paying dividends and he is looking at a 5-7 %
yield.
Albeit, he did promise an increase in the dividend about 2 years ago as a sweetener when he was
courting a company that SGY took over. That didn't happen because the price of oil collapsed...
His timing is ppfuking terrible...
Looking at the wtic chart from 3 years ago, SGY would still be where it is now, had he hedged
because the price for wtic was around 63-65, so the hedge would have to be higher for the following 2 years.
There was a time when wtic was in contango but I can't remember the specifics.
Most of the time, ANY company that tries to grow by acquisition, ends up destroying shareholder
value... Big mining companies are a case in point. ABX is still selling below the price from 10 years ago and in 2015, it was as low as $8...with all their acquitions. A ton of s/o, though...
Big companies that acquire companies that are accretive is when the acqusition is for a small
company that fits into what is missing by the acquiring company...
A good case in point is CSU. Their acquisitions are less than $5 m and are accretive. Also, they
usually pay half cash and half stock and they retain mgnt...
Thanks to ESGers, oil prices are going to be high for a long time.
We are still burning cow dung and wood to make electricity.
What are these people talking about. They certainly are not original thinkers...
Probably they get their news from social media: that could explain things...