Post by
Proud_Canadian2 on Jun 18, 2014 5:22pm
To Sukhi19,
It is impossible not to agree with you. Over the short term SGL is a toss and may either remain stagnant for the next few months or even drop lower. But since I don’t see the picture as dire as some concerning the level of their debt and think that the dividend will not be totally illuminated but likely trimmed, not cut, I’d rather invest in a company with [on balance] positive outlook and book value of 0.5 than join the stampede getting into what has already ran up - other as "leeky" as SGL oil boats still burdened with relatively high levels of debt [too many of them to mention here, but try stacking them up against SGL; none are debt-free [like, say PXX] albeit with about half the debt of SGL]. Would I now buy, say, PWT or PGF, or even Bay Street darlings like BNP, TOG or LEG at current valuations? No I’d rather look for something overlooked or even hated, like SGL.
As it has always been, investing in oil can be a perilous affair, especially considering that the market itself is, more often than not, corrupt and heavily manipulated. For me, just as it is for all of us [smaller fish], it may prove profitable to rely on what is more or less logical and potentially very profitable in my mind than cringe in fear or squarely rely on so-called advisers, who could easily exaggerate something they are ready to sell while advising me to buy the same thing... Like that never happened... when they prance on BNN and shooting darts into the blackest of the black pools.
Again, this is just my opinion... nothing more; as I said before, logical assumptions [especially in a rigged game imposed by the “big boys”] is a tricky thing to handle; and so my assumptions could be as flawed as any. No advice here; just the best of luck... Hopefully, this management takes their job seriously and would not cause any more unnecessary pain for the investors in SGL; especially now, when commodity prices are firm enough to make money for themselves [on their options] and for us, who could be instrumental for it to happen if more people would choose to invest in this stock based on management’s accomplishments - not just hipe... or blind hope.
GLTA
PC2
Comment by
Sukhi19 on Jun 18, 2014 10:52pm
PC2, Thanks. You views are a great help.