GREY:STPJF - Post by User
Post by
Oilfascinatedon Apr 11, 2014 7:09pm
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Post# 22442423
What are the downsides?
What are the downsides?Hi.
I have invested in this stock on and off over the last number of years. Now, I'm invested.
I like the positive things that are mentioned about the company on this bullboard and am anticipating some great news in the future, but I have a few concerns that hopefully could be flushed out by some of you.
1. The debt stands near something like $600 million now. Don't they have to produce something like 12,000 barrels per day just to break even, assuming they see something like 48/barrel?
2. There are something like 400 million shares outstanding. Is this the total number including the stock options etc...?
3. They bought how many hundred railcars to transport fuel down to US refineries and that will theoretically ship solvents back? Aren't these rusting somewhere because they are not producing anywhere near the amount that they need to, to fill these up.
4. Eventually, I am 100% sure that the oil will be extracted from the ground, but can STP really bankroll considering all the above issues. This management team is phenomenal. They built the plant for 425 million greatly under budget (I think this is the number) in anticipation of the big oil that is underground at Mackay that they haven't been able to get out. I know that there is cause for celebration with regard to the ICDs working better, but these are big numbers.
5. There are so many positive things that make this such a great company, but will it be STP that can really develop this? At $3 million a well that are generally significantly underproducing, with such a massive debt, these are serious issues. Am I missing something here?
Thank you in advance.