RE:RE:When are folks cutting SDE back?// Fauxtomato check for messI hardly ever post but I want to thank this board. There are not many posts but most are well thought out and provide great information.
I am also way overweight SDE despite having said I would never do that again after getting burned with PONY.
I think I am going to stay in for the time being (summer time line). The market seems fundamentally under supplied. There also seems to be a realization that Natural Gas will need to be part of a long term energy plan. SDE seems very undervalued still. It’s EV compared to NVA and BIR is still low, it seems like it still has a lot of room to run. Eight Capital just came out with a $30 target. I don’t see a better value O&G stock right now.
On another note and this is pure speculation but I wonder if Nine Point Energy Fund bought the 9.9% from Markov. They already own SDE in their resource fund.
https://www.ninepoint.com/funds/ninepoint-resource-fund/ They own PIPE in this fund as well. Last time Eric was on Market call he said PIPE didn’t have enough liquidity for him, the next thing you know its one of his top holdings. He owns all of SDE’s neighbors. He likes to buy distressed stock at a value price like he did from Equinor when he bought ATH.
Just my thoughts,
FK