SKO Q3 Earnings I anticipate that Stream will have a great Q3 earnings:
The Q2 MD&A indicated current daily production net to Stream was 1,600 BOE's compared to the Q2 average daily production of 1,141. For simplicity sake I presume that the 1,600 BOE's will be the Q3 average.
Brent pricing for June to August was 20% lower than March to May. As Stream price is based on Brent, I again presume that their sales price per barrel will be 20% lower.
Taking these factors into account in my model takes me to the opinion that the EPS will be 0.10 per share. As Q2 2012 EPS was 0.08 and Q1 EPS was 0.03 and Q3 2011 was 0.03, the trailing 4 quarter EPS will increase from the current $0.13 / share to $0.24 per share. At the current share price of $0.85, the P/E ratio will fall from the current 6.5 to 3.5. There is not another company that i can find that has such a low P/E ratio. Further, the price of Brent is up around 15% so far in Q4.
I assume that this is not reflected in the stock price due to managment not putting a lot of effort into telling the story. The presentations are limited to the annual general meeting. Further, when I call the Stream head office in Calgary, the receptionist seemed suprised that someone was calling to speak to the investor relations. I presume that the company is putting their resources into running the company as opposed to promoting the company and i am fine with that.
I have spoken to Raymond James and Altacorp and not only do they not follow the company but they have not even heard of it. I do know that John Tognetti has heard of it and he buys as much as he can. I googled Mr. Tognetti and feel he is a creditible investor. If he is buying all he could, well i decided to as well.
Based on this, i have acquired a pretty good position in the company in the past 8 weeks. I feel that the window to buy stock is coming to an end with the release of Q3 that i deduce will happen on October 31st.
With respect to Stream's Q3 MD&A, i presume that they will announce that the price that they receive will not closer to Brent consistent with what Bankers is experiancing. I am hoping that their current production will be higher than the 1,600 BOE net that they announced in Q2. Thus, i see a number of catalists for a solid Q4. Again, the Q4 EPS will replace a 0.03 EPS in Q4 2011 that will (i presume) provide us with a 2012 annual EPS of around $0.31 per share.
Personally, I can not see Stream spending a lot of their limited resources on Delvina. Their current gas does not have a market and I can not foresee why they would increase their gas capacity until they have a market for their existing gas... just my speculation.
Good luck with your investment on SKO...