Spartan Delta Corp T.SDE

brutal price target cut

[ValueCat]

DJ Spartan Delta Corp. Price Target Cut to C$5.00/Share From C$8.00 by Raymond James - Dow Jones News

cut to market perform

sour grapes?

[TouchDown12]

Why? Debt Risk? Proforma looks very strong into 2022. Anyhow, it will be interesting to see other targets. Anyone have a target summary of analysts? I have been buying all the way down this AM. Will see. TD12

[ValueCat]

fear of the increased debt concern with steep CF decline rates and volume committments at Velvet lack of mgt experience with Montney.-  could have a tricky learning curve

[filefish]

Prior to the Velvet acquisition, SDE was well on its way to deliver meaningful returns to shareholders in a debt free ( risk averse) manner. They already had plenty of potential to increase their production thru the drill bit and at the same time keep the banks out of their hair . Thats what intrigued me about the stock. All of that changed with this deal. Management must have made their minds up

[Seppelt]

I can't wait to see updated website and maps. But as far as we all know and remember, when you combine existing Montney lands with Velvet, the Gold Creek, Karr and Simonette holdings are very significant. Not to mention synergies and additional technical staff. Debt is something that investors who bought a debt free co must adjust. Based on pro-forma 2022 guidance it is a lot lower than many