Spyglass Resources Corp SGLRF

RE:Sell now and buy blackberry

[konzelmann]

While I laugh at the thought of switching from an oil producer at a 52 week low to a tech stock that has a history of underperforming on earnings, that also happens to be near 52 week highs, I certainly agree that my concern with SGY was the pattern of decreasing production, disguised as 'sustainable' by the fact that they're spending less than they make. If production falls because they keep their payout below 100%, then the model is not sustainable at all. They either need to spend to grow, have a payout over 100% in order to grow production (which will grow debt as well in the process, but at least then you'll have higher cashflow moving forward to service the debt and dividend obligations) or cut the dividend further and increase capex more to at least level production off.