I decided to make STU my oil holding and sold all my shares in other oil stocks to put the funds in STU. I am still on the bid for STU but, as your know, its quite thinly traded. Eventually I hope to have aboutt 25% of my portfolio in STU.
Having listened to you, and others, I think that STU has minimal downside risk. It has a lot of debt, but the debt is manageable out of income. Of course the key is quality management and the concensus is that STU has that.
A 2 cent franked dividend twice a year on a stock trading at 40 cents is a 13% return, good by anyones standards.
I don't mind losing money on barren wells provided the techincal details and commercial and country risks are well thought out before hand, that's exploration. The flip side is obvious, leading to a huge rise in price and hopefully making the company. Many of the worlds large companys started small. Some were good at what they did, some less so. Anyway, I've cast my dice and will stay with the result.
Thank you again for your comments.
y
STU Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
