Thought I would have a look at STO's financial statements.
STO had fallen significantly; perhaps there was a bargain here to be had.
Cash Flow: Here is where the problems are. For the past 5 years capital expenditures are 15.1 billion. Cash flow from operations 7.4 billion. In the last 5 years this company has spent 7.7 billion more than it produced from its operations. This was a company that was "hoping" for a high oil price for ever and was spending. Spending share holders money!
As it was paying out dividends and burning cash, it issued 5.4 billion dollars of debt.
Balance Sheet (June 2015): Working capital (current assets- current liabilities) of 84 million. This is woefully inadequate compared to long term debt of 8599 million. Market capitalization of company 5.67 billion. In 2010 working capital was 3656 million and long term debt 2787.
I have no position of any sort in this company, but the above speaks for itself.
If you are foolish enough to buy STO, you can only be doing that in the hope that a bigger fool will take it off you hands.
STO Price at posting:
$2.95 Sentiment: None Disclosure: Not Held
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