Sceptre Bid

I predict that Sceptre will bid again within the next two months, perhaps sooner. Why, the current market cap is just above what the PNG LNG stake alone is worth, coupled with this they have 3.5 billion more in cash against their debt as a result of the CR initiatives.

Hony can’t bid for approximately 2 more months, which provides a small window for sceptre to make a pre emptive move, especially as this price is this low.

We are close to the very bottom as CNBC states, the previous bottom for oil during the GFC was a result of a demand issue, whilst now it’s as a result of supply issue, all that is needed is demand to outstrip supply which is likely as major economies are on the up (US, Japan etc..).

Also now that the sale of oil search is off the tables there is a limited supply of large well established players to satisfy the appetite from M&A activity, activity which always increase during times like this when there is a once in a generation chance to snap up a company the size of Santos. Because a lot of their projects are in their beginning stages and will last a generation of production, the actual price, revenue and profit will be higher as a longer term moving average..