Spyglass Resources Corp SGLRF

RE:RE:RE:RE:Price of Oil Remains Strong

[shambano1]

sanityseeker

new poster since june 9.

you will never find any sanity in the stock market, better seek elsewhere, maybe the bond market.

here is another unsanity hint, the market rarely gets anything right, and that's how you make money by buying under-valued stocks or shorting they become much more valuable.

so here's the rub on SGL, their NAV is much higher than the current share price but thier payout at 100 or slightly over 100 is a bit high and the market lables them a risky stock,

but you're saying they will be worth more if they cut the dividend because the market will look at it as a less risky business, so in essence I stand to gain one way or the other.

1-if they don't cut, I still make a high yield return even if I don't make any capital gains.\

2-if they cut the dividend I will load up on the news if yield investors exit and the SP will bounc back because now they can increase their capex and still pay a 5-8% yield.  So I will make a huge CG because all of a sudden the yield is much more sustainable.

so why would I sell this stock I win either way??

take care newbee poster and good luck with SGL anyway you play it unless you short it.

I'm long and biased so DYODD