Thoughts:Afternoon all,
I few points that I think should be pondered at this point:
First, lots of picking on SGY today as oil continues to move up but SGY is just up a penny or a penny and a half. This is not just SGY it is most of the Canadian Oil companies. They are all out of favour right now, this will not last forever though. We are making money at this point and eventually the market will turn. SGY up 1.45% / VET up 1.61% / CNQ up 0.82% / CPG up 0.12% / SU down 0.54% / BTE up 2.30%. It’s not just SGY.
Second, WTI is up but our differentials have closed as well and at the same time US dollar is maintaining it’s strength. All those things combine SGY is currently getting $60.55 / barrel of oil Canadian. This is well above our break even mark.
Third, Q4 is going to be really bad, but that is baked into the share price, everyone on this board should know that. However Q1 will be significantly better and Q2 with the new drill program should be very good.
Forth, at some point SGY will also give us and update on the 31 wells they are drilling in the Sparky. It won’t be real soon but when they do, this could be a huge catalyst for the share price.
Fifth, now is the time to get in if you are waiting on the sidelines, as when large investors return to Canadian Oil Companies the share prices will take off, it’s only a matter of time. Someone used the example on this board a few days back about a coiled spring, I could not agree more.
Good luck to all the longs!
Kid