ThoughtsGood morning all,
I have to come right out and say I actually like this bought deal, I know there are a lot of people pushing back against it and in the short term the share price has reacted negatively. However, that is simply those looking to trade the shares exiting quickly and possibly some shorts being added. If you are looking to be in SGY for a few weeks a month, then yes, please exit with the rest. If you are looking to invest in SGY and are here for the long haul, then this is your time to add to your position. Below I have listed the reasons why:
One, this cleans up our balance sheet nicely. Very quickly SGY has provided it’s self with the necessary liquidity to drill on one of the best properties in Canada without having to add any debt. I actually believe at current production rates / oil price we will continue to decrease the companies debt in Q2, while at the same time add significant production.
Two, the bought deal was significantly over subscribed. That means there is interest in the company, investors believe in what SGY is doing.
Three, SGY would not have gone done the bought deal unless there 31 wells drilled in Q1 this year produced at or above their expectations. I believe we will see great numbers when these results are released.
Four,
until May 14th we can fully expect that the share price will be held down, however we can expect some good news in the next two weeks. Drilling results will be released, Q1 results will be released, AGM
on May 14th, and production outlook for 2021/22. SGY was simply getting this NR out of the way first. I’m not saying we are simply gong to take off
on May 14th, but I think through the summer the coiled spring is going to release and we will see some substantial share price increase through the summer months.
Five, Eric Nuttal, I actually don’t mind the guy, he is constructive on oil and right now loves companies that are very comparable to SGY in every way. He simply doesn’t like SGY management. See it for what he is, SGY may not get the Nuttal bounce but he loves companies just like SGY. We will move, just won’t be because of Eric.
The future is bring, if you are looking to trade on a few pennies time to leave if you have not been forced out already. For all us longs, the future is bright!
Good luck to all the longs!
Kid