At this time, all the positive factors are completely ignored or played against by the shorts. We have too many things to look forward to and "shortermism" does not reflect the true value of SXY
We made profit last financial year after "writing off" all the secondary assets from previous years. Hopefully there is no further write down required as it seems most of the skeletons are taken out to dry currently
We have well over 110 mmboe gas in reserve. At the constant unchange production rate of 3mmboe/yr for the future and this will give us almost 40 yrs of gas supply. Now if we are pessimistic ( let's say we only manage to recover 50%) this will give us 20 yrs production.
We made net profit 3 million dollars profit of revenue of 92 millions and EBITDAX is $39 Mil. Lets say we reduce the exploration (X) by 50% and it will gives us a profit about $20 mil against market value of $450 mil at last year figure. Now let's assume we double the EBITDAX this year as we ramp up production and selling more gas (incr production) and oil (stronger US dollars) shall give us a PE ratio about 10, which to me looks cheap.
All things looks north except the wild card is DT who is unrelentingly filling up his own narcissistic ego, had made the business world so uncertain that no business could plan ahead for the future. New sales/contract would be hard to find until this guy is off so that the business world can carry on.
This SXY fundamental value does not change versus fluctuating daily share price. Now it comes to if you want to believe the business or its share price. Happy investing!
SXY Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
