Spyglass Resources Corp SGLRF

RE:RE:RE:RE:New 52 Week Low ---$1.55

[konzelmann]

I do feel that SGL looks undervalued. I feel it's a combination of perception of high debt, gas weighting being relatively high compared to those others mentioned in most cases, and the fact that production has been going in the wrong direction. So I'd say valuation is cheap, but there is some definite risk here and that's why the valuation is cheap. You need the valuation to be cheap to be worth buying, otherwise you're better off taking less risk with Twin Butte and still getting some good potential upside and a great dividend. So the question is, how cheap do we need valuation to be to compensate for the risk? Below $1.50 might look really nice. I'm thinking the next quarter for SGL will look pretty bad still and that could lead to more downside in the short term and present an even better buying opportunity. But who knows. It's already pretty cheap, so it might not be able to go down much further unless fundamentals really were rocked by unexpected bad news.