RE:RE:First, I would like to wish all............ I do not see it as SGY having stronger management. LEG management has done a very good job so far and is in a much better position than SGY with respect to future growth. LEG has much higher reserves, production, %OIL, CF and OP netbacks, and future drilling locations.
LEG is an ideal buy for both VALUE and GROWTH.
SGY is a great buy for yield but not so much for VALUE or GROWTH.
I will forego the 7% yield on SGY in favour of the 70% potential cap. gain on LEG as well as the potential 7% yield on LEG at some point in time. LEG is also a much safer stock with regard to downside risk since SGY has an all-in CAPEX +DIV of close to 100% .
Obviously I do not expect the 70% cap gain to be long in coming and it will certainly more than make up for not getting a 7% dividend.