no lose, page-2

para

that is it in a nutshell

in fact ESG holders almost have the perfect hedge in play my with either of two somewhat equally likely scenarios with slightly different timeframes...

longterm upside in STO vs shorterm cash for reserves upgrade

at 0.0688 STO for my 1 ESG it is not ideal but the beauty of this is that at an average p/e of 20 over the last eight years STO is a blue chip cash machine riding the commodities super cycles..earnings per share could be $0.50(worst case) or $1.20(if they sell equity/high oil price/bring new production on line etc etc)

so imagine best case scenario, STO earning $1.20 per share and trading at p/e of lets say 20-25..that folks equates to a share price of between $24.00-$30.00 per share.

times that by 0.0688 and you get $1.65-$2.06..that is what your 1 ESG share could be worth at some time in the future..not taking into account future dividends

it is conceivable that ESG holders are better off with 0.0688 STO and the upside that is presented by a lightly diluted, asset rich, cash machine like STO..dare i say future takeover target

i am in no way endorsing the offer and will be voting no but it is worth considering that the upside in STO is far more de-risked that that of ESG.. that has to be worth something

personally i am holding out for 0.100-0.115 STO for my 1 ESG..that would give me a nice return and still plenty of upside in a slightly more diluted STO..

DYOR

DYOR