Surge Energy Inc (Alberta) T.SGY

CEO is a gambler & needs to be controlled.

[PUNJABI]

This stock has been an underperformer because of the blunders of CEO. He diluted the stock when the share prices were crushed and then he increased the size of the offering. He threw the shareholders under the bus by doing the reverse split. What was the purpose of massive reverse spilt. The stock would have easily run over $1.00. He is a very experienced oilman and knows the field very well but he is a big gambler constantly wheeling and dealing buying new assets at the wrong time and extending the company that caused unnecessary suffering to the shareholders. Most oil stocks have multiplied but this stock had stalled till very recently.
 
 Finally, there is a light at the end of the tunnel. They don’t have hedges which means they can make a lot more money now at current high oil prices and lock in a higher price higher for the future. The company has quality light oil, a low decline rate and big netbacks. The cost of drilling new wells is covered in 2 to 3 months. In another 5 months, their debt will drop further and they will be in a position to consider dividend and share buyback. Knowing this guy he will exceed the projected production by drilling more wells or buying more production. The board should stop him from buying new production and getting any more debt. Hope he has learned a lesson not to extend the company by borrowing.
 
Now that the company has quality assets and billion WTi over $83 with a tax pool of billion-dollar and at the current share price this company may become a takeover target.
 
In short, things are aligned for this stock to finally run.

[1970Craig]

Very well said.  I think there are many who agree here !     Remember when we picked teams at lunch time.  Two captains and each picks one at a time !  Well the only reason we are running or being picked now is becasue we were eventually the only one left.        Either way we are at least playing !   If the CEO does the right thing it

[TickerStock101]

I disagree that he is a gambler. He's methodical and smart, he sees the long game. They have great assets now with Sparky and SE Sask. They do not need the others but he may keep some. They can increase production by end of the year with their current development budget and sell Greater Sawn and Valhalla. But I think they would just sell just Greater Sawn. Do you realize how much this one

[Tanman1914]

Maybe they can sell Greater Sawn area when oil is around $100 WTI or more. Take the extra cash and buy some more high quality assets around SE Sask.

[TickerStock101]

Knowing Paul he's probably in the process of doing that already back when oil was even cheaper. Probably will soon start selling Greater Sawn to make the payout for it

[1970Craig]

I should of made clear that I agree that debt needs to. Be paid down.  This in the long run will do more for us share holders than the divvy.       I am not accusing the CEO of being a gambler.  You do what you think is the next right thing.  Bring a leader is a lonely place.   Bottom line is we are still standing and there were lots of so called leaders who

[TickerStock101]

Haha yah It depends if that car is a truck and can make you more money than without.  You can take that analogy a bit further, don't sell your old house when the market is down but be patient and live in it. Then if your a smart invester get a morgage on a new house when house prices are very low. Then sell that old house when prices are high. (Astra Assets are the new house, and

[1970Craig]

Great post.  That is money !!  C