A few thoughtsGood morning!
Hope all is well with everyone and no one is getting Ng too broken up over the current share price of SGY. I have a few observations/thoughts this morning I thought I would share:
1. Current price SGY receives per betel on AVG, as it sits this morning with exchange and WCS/ Edmonton Sweet discounts factored in is $63.34 Canadian per barrel. From reading other posts, I assume this is higher then most people are thinking.
2. Lots of talk on here about the dividend not being safe. SGY has stated in the past that they can pay the Dividend comfortable with WTI at $55 and diacuoints being at $18 and $10. Currently and on avg this quarter, oil prices have been significantly better then this and I expect the same goon forward. To my the dividend is very safe.
3. My opinion and this is just my opinion is that SGY is using the extra money from higher oil prices to pay down debt and on Q2 numbers we will see that debt is down in a “significant” way.
4. Big G20 meetings this week which I expect to be positive, I would be shocked if there was an actual agreement, however I think this meeting sets up and agreement between US and China.
5. OPEC will maintain their cuts in they early July meeting for the second half of the year.
All that to say, the sky is not falling. Collect your 8% dividend and sit back and just wait. Where else are you going to get an 8% return!
I have been in this stock for years and i’m Under water significantly right now. AVG price in my holding sis $2.70, however I have not sold a share, just recently have added and typically reinvest my DIvidend. This has actually become one of my core holdings. I have faith in the company, faith in the leadership and believe oil will stay above $50 for the forseable future and possibly significantly higher depending on a few major world events.
Have a great day and good luck to all the longs!
Kid