RE: RE: RE: RE: RE: RE: Spyglass ipo PCE and CHX were greatly undervalued by the market while AVF was somewhat undervalued
as its price was somewhat supported by its dividend. If SGL trades at a 10% dividend then
PCE is worth $4.68. (i.e SGL would trade at $3.60).
If SGL can show that it can successfully drill for light oil on the lands PCE and CHX brought to
the merger then SGL could trade at a 7.00% dividend. or a $5.14 price for SGL. This scenario
implies PCE would then be worth $6.68 or nearly a 100% gain from todays price. SGL may well
be worth holding. Another wild card benefit may be the GAS rich north east B.C. lands at NOEL
and Ferrell Creek that were brought into the merger by AVF and PCE.
I expect I will hold onto my SGL shares and may buy more PCE at $3.40 to hold for a shorter term.