Post by
Swingman24 on Nov 25, 2013 10:01pm
Desjardins initiates STP at hold
Anyone know the price target or have the commentary?
When end the price gets this low I go back to the liquidation value. Given the 56 sections of non producing land (80% WI) sold for $18.8 million back in September the rest of STP's non producing land is worth at least $105 million. Production transactions in canada this year have gone for approx $65k per flowing barrel. Last month STP produced 4,500 bbl/d so that gives us a value of $295 million. Add that to the non producing land value and we have a liquidation value of $400 million. Almost covers the debt with absolutely no value placed on production ramp prospects.
The he stock is cheap. May get cheaper, but it's cheap.
Comment by
BayStreetRaider on Nov 26, 2013 10:52am
Desjardins put a price target of $0.50. Their report is titled "I still haven't found what I'm looking for", alluding to the uncertainty around future ramp up at STP. Within it they make the case that STP remains a 'show me' story and that the next several months will be absolutely crucial.
Comment by
Swingman24 on Nov 26, 2013 11:20am
Thanks. I agree with all of that.