Spyglass Resources Corp SGLRF

One dollar target by Scotia ?

[PUNJABI]

The one dollar traget is not inline with other analysts tragets. The target is based on missed production. Lower guidance. High debt. Deleveraging with sale of assets could further hinder growth & div may becomes unsustainable. Still $1.00 for 14650 BEOD production does not make sense.

Views of the Ananlyst W. S. Lee
"Company Profile
Spyglass Resources Corp. is an oil-focused E&P company with the majority of its asset
base in Alberta. Spyglass is focused on maximizing value from its Dixonville Montney
oil pool and delivering growth via its Mannville and Glauconite pools in southern
Alberta and provides exploration upside via its Red Earth Slave point and Haro
Pekisko oil plays. The company's capital is allocated to developing its light oil
plays. Spyglass is currently ~50% gas-weighted but is growing volumes toward oil and
liquids. Spyglass's shares trade on the TSX under the ticker SGL.
Business Mix (Based on revenues unless otherwise noted)
Production: 50% Natural Gas, 50% Oil & Liquids (100% Canadian)
Comparable Companies (TSX unless otherwise noted)
TOG, SGY, BXE, WCP, TBE
.Recent Update Text as of 6MAY14 . Spyglass announced Q1/14 results. Q1/14 Miss. Volumes of 14,560 boe/d were below Street expectations of 15,634
boe/d, and CFPS of $0.13 was below consensus at $0.16. SGL has 600 boe/d shut-in
after two pipeline leaks at Dixonville which is expected to result in higher 14E
op costs due to clean-up and repairs. YTD SGL has closed $9.9M in dispositions
(200 boe/d & undeveloped land), and continues to look at opportunities. . Guidance & Facility Down. 2014 is now guided at 14,750 boe/d (prev. 15,000) on
$70M capex ($60M net of disp.), and we are below guidance at 14,425 boe/d.
Subsequent to Q1, SGL's credit facility was renewed at $375M (down from $400M).
As of Q1 end, SGL had 78% of the new facility limit drawn (82% incl. working cap
deficit). . Sidelined. We are on the sidelines on SGL as we see 2014 as a challenging year.
Valuation is reasonable at 5.7x 2014E EV/DACF, but debt levels remain high at
3.9x, debt-adj prod/sh growth is forecasted at -13%, and targeted capital
efficiencies are of concern to us. In our view, SGL faces necessary deleveraging
which, if achieved through asset sales, could further hinder growth and bring
the sustainability of the dividend into question. . We are lowering our target to $1.00/sh and maintain our SU rating."


During the latest reporting period May 1 to 15 the short position went up by another 771100 shares.

Short Positions for SGL

Symbol	Report Date	Volume	Change	Shares Issued	% Float
T : SGL	2014-05-15	5,633,602	771,100	128,076,720	4.40

During May 1 to 15 the largest net seller was Scotia. Based on house postion it seems that more than one broker may have shorted the stock.

Based on the large sellers for this period the possible short sellers can be :

Scotia
Barclays
Golobal Goldman
Anonymous.

The only Broker that sold more than the shorted shares is Scotia. But more than one brother may have shorted the stock. There is no way of find out some one selling shares from Scotia was shorting or selling a long position. Anyway some one from Scotia did sell quite a few shares in two weeks.


House Positions for C:SGL from 20140501 to 20140515

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
7 TD Sec	1,069,341	1,866,958	1.746	627,432	1,100,062	1.753	441,909	-766,896
2 RBC	865,481	1,515,162	1.751	463,727	803,423	1.733	401,754	-711,739
123 Citigroup	109,700	195,660	1.784	0			109,700	-195,660
88 Credential	108,500	187,225	1.726	2,458	4,204	1.71	106,042	-183,021
80 National Bank	184,295	323,135	1.753	111,441	194,033	1.741	72,854	-129,102
33 Canaccord	69,233	121,381	1.753	890	1,610	1.809	68,343	-119,771
9 BMO Nesbitt	353,534	616,263	1.743	300,805	519,459	1.727	52,729	-96,804
59 PI	45,712	78,480	1.717	651	1,121	1.722	45,061	-77,359
19 Desjardins	72,420	127,430	1.76	31,024	53,601	1.728	41,396	-73,829
71 Brant	40,900	71,686	1.753	0			40,900	-71,686
15 UBS	61,374	108,026	1.76	25,099	43,534	1.734	36,275	-64,492
25 Odlum	30,000	52,500	1.75	0			30,000	-52,500
58 Qtrade	22,666	39,686	1.751	0			22,666	-39,686
143 Pershing	19,340	34,861	1.803	0			19,340	-34,861
79 CIBC	666,725	1,159,668	1.739	653,377	1,137,501	1.741	13,348	-22,167
13 Instinet	47,700	84,698	1.776	39,600	68,497	1.73	8,100	-16,201
124 Questrade	28,106	50,434	1.794	21,031	36,466	1.734	7,075	-13,968
39 Merrill Lynch	70,510	124,162	1.761	63,700	110,564	1.736	6,810	-13,598
121 Jennings	5,419	8,941	1.65	0			5,419	-8,941
68 Leede	3,100	5,704	1.84	0			3,100	-5,704
44 Jones Gable	3,000	5,430	1.81	0			3,000	-5,430
28 BBS	2,050	3,604	1.758	0			2,050	-3,604
57 Interactive	0			1	1	1.00	-1	1
77 Peters	0			42	73	1.738	-42	73
78 Salman	0			50	86	1.72	-50	86
96 Blackwatch	0			65	119	1.831	-65	119
86 Pictet	0			91	153	1.681	-91	153
76 Industrial Alliance	0			600	1,047	1.745	-600	1,047
3 AltaCorp	40,000	68,800	1.72	40,600	72,338	1.782	-600	3,538
95 Wolverton	44	77	1.75	800	1,368	1.71	-756	1,291
99 Jitney	25,600	44,223	1.727	26,800	46,209	1.724	-1,200	1,986
10 FirstEnergy	0			1,440	2,506	1.74	-1,440	2,506
70 Manulife	0			2,800	4,704	1.68	-2,800	4,704
101 Newedge	21,600	38,473	1.781	25,100	43,555	1.735	-3,500	5,082
14 ITG	5,901	10,285	1.743	9,744	17,528	1.799	-3,843	7,243
27 Dundee	0			8,698	15,677	1.802	-8,698	15,677
53 Morgan Stanley	100,500	175,471	1.746	110,900	193,463	1.744	-10,400	17,992
62 Haywood	2,000	3,460	1.73	36,116	62,582	1.733	-34,116	59,122
89 Raymond James	102	176	1.725	38,039	65,269	1.716	-37,937	65,093
72 Credit Suisse	164,001	286,613	1.748	240,100	418,913	1.745	-76,099	132,300
74 GMP	24,300	41,596	1.712	131,152	229,449	1.749	-106,852	187,853
1 Anonymous	406,600	710,033	1.746	536,900	947,885	1.765	-130,300	237,852
65 Goldman	124,535	217,630	1.748	272,300	480,053	1.763	-147,765	262,423
42 Global Maxfin	0			198,500	353,274	1.78	-198,500	353,274
90 Barclays	14,900	27,267	1.83	242,500	417,924	1.723	-227,600	390,657
85 Scotia	283,664	493,560	1.74	828,280	1,450,507	1.751	-544,616	956,947
TOTAL	5,092,853	8,898,758	1.747	5,092,853	8,898,758	1.747	0	0