huge potential for oil and gass, page-3

Nothing has changed with SXP...

Not one iota.

The market has however, and it is this influence that has impacted the share price of so many start-up stocks...including SXP.

Some will lose their attraction altogether now, whilst others will simply go through a period of adjustment before resuming previous trends from revised levels.

SXP will be one of the latter in my view.

Future debt just became harder to obtain and more expensive when you do...as such, this has an obvious impact on capacity to finance future projects, which ultimately impacts on dilution and future value models.

In effect, the recent "mess" of sub-prime and subsequent all new credit aware environment, will ultimately effect the future fully diluted registers of most small-caps in need of significant (relative to market cap), dilutive project funding in the years ahead.

SXP is in this category, as are most of the CBM plays due to the long-term nature and capital requirements of this sector.

I feel this period of adjustment is mostly over now however, but unlike prior to the "mess", future rises are now likely to be more subdued, and far less likely to carry significant forward pemiums in all but a few select CBM stocks.

SXP will see significant share prices in the years ahead...all things going to plan...but each significant rise going forward now, by necessity, will be entirely based on quantifiable results.

Pricing premiums for "potential" are very much less now than they once were...but inherent value will always prevail.

The people at the helm and the assets at their disposal will be the key...and in this regard, SXP gives me no concerns.

Cheers!