My Thoughts on Surge I was a Long View shareholder and was quite happy to become a SGY shareholder when Long View was taken over.
Since then I have traded around my SGY position a bit but currently seriously underwater.
Of all my underwater Oil and NG related stocks SGY is my personal top pick to add to for a mid-long term hold. Canyon Services (T.FRC) is a close second.
What I like about Surge is;
- No DRIP and the built-in dilution they generate.
- Excellent balance sheet. It was unfortunate that they had to sell some very good assets. The good news is that they got a good price.
- The assets that they have are very good.
- They are very good operationally.
- Paul Colborne is a large shareholder. He has invested a substantial amount of his money buying shares on the open market.
- P. C. seems to be determined to keep the “All In POR” at 100% or less. If another dividend reduction is required “so be it”.
In my “opinion” the companies that can survive this downturn with Good Assets and Balance Sheets without Diluting the shareholders are the place to be.
Although things may / probably get worse before they get better I think SGY will be one of the survivors.
Actually I think that the biggest risk is that due to the quality of the SGY Assets, Balance Sheet and Extremely Undervalued Share Price we could be taken over by a company with substantially inferior potential.
As Always; Do Your Own Due Diligence; It’s Your Money !!