Southern Pacific Resource Corp STPJF

What if??

[zanadu123]

What if McKay is put on sale and Senlac is held back?? 
Suncor, Grizzly, or any adjoining land buys out McKay...

[tp0052]

If they do that, they might as well jump on the mining company bandwagon and elect to raise some $$$$ by going in to marijuana??? LOL...It's nice to laugh again :) Future looks great and I'm with Shat. Holding long ... Cheers and GLTA!

[zanadu123]

TP: That is exactly what my dog says...McKay will yield more valuation...because of mineral rights....STP will get good cash due to improving flow rate of IUD / ICD....  and stock price goes up immediately. Management bails out...mission accomplished...

[nikehercules]

STP management is not the pump and dump type. Besides, selling McKay would be equivalent to a complete sale of the company. The second lien junk bonds have conditions against selling off a substantial bulk of STP's assets - they are tied to McKay like the bank line is tied to Senlac. The future value of McKay is far greater than the present value, that's why I don't think a

[zanadu123]

But, my dog just saw this in the crystal ball.... Time will tell.... Have seen lots of greedy management...tons out there...

[alfino]

I want this F#$#er to go to 12000 bopd as promissed and back to 1.70$ times..and I believe this managment can deliver that and then we will have a company with steel balls to sell for a great deal.

[zanadu123]

I like that....i am with you...but sometimes i get tempted to listen to my bad dog...

[nikehercules]

Management is greedy. Lutes has 467,205 shares and 2,845,000 options, most of which are over $1.00 according to the "Notice of Meeting and Management Proxy & Information Circular". 850,000 are at 0.56 and expire November 3, 2014. If he sells the company at a buck, he only gets his 2x salary, which is chump change compared to the potential  rewards. Plus he take a 40% hit on

[zanadu123]

Options are granted by companies to management to perform. Lutes paid 0 cents for them. Shares - dont know what price he paid...or was part of his term...or if he even paid. You and me (for certain) bought STP shares with hard earned tax paid $$$ There is a difference.... We see all the time....options expiring worthless.... McKay sale can take this above $1 immediately, and al these 2.8

[freedom45]

Net Asset Value Estimate NPV @ 10% NPV @ 8% NPV of Proved Plus Probable Reserves, Net Asset Value per Share $4.89 $7.74

[poorgrammar]

@freedom45, if your assessment materialize lot of people will seeking freedom at 35

[Eyeinvestor]

Nike.....finding a strategic partner to buy a working interest in STP McKay would be by far and away the best outcome for the stock. Eye described 3 possible ways of re-capitalizing STP for future growth. A combination of increased debt (but Im worried how expensive that could be) and a sale of a 20-30% working interest in McKay would be the best. Eye will run y'all thru the numbers in another

[nikehercules]

Debs are great, i get the upside without the volitility and a big coupon while i wait. Shat worked out an amazing almost too good to be true annual rate of return of 48%. I haven't worked out the exact number myself. I am new to directly purchasing junk bonds. Previously i got exposure through JNK, but that got a little overpriced so i sold. Deb payments are taxed as regular income, so they

[Eyeinvestor]

From a tax perspective STP DB is attractive if it works. The appreciation of bonds from a discount are treated more favorably in Canada than US Bonds. Check with yr accountant. My understanding is that appreciation from a discount of canadian bond is Cap gain and appreciation from a discount in the US is treated as regular income. So most of the return from STP DB is going to be taxed at cap gain.