sea is a massive buy

With the US IPO now behind us SEA has to be a massive BUY.

Over the past few weeks/months:

- AUT has been bid for at a huge premium to SEA
- There are now counter bid rumours on AUT
- SEA now has its capital to accelerate the drilling, which you know will be NPV positive
- SEA has just announced another great acquisition, with more to come
- WTI is up c.12% since mid Jan
- SEA is trading at < 2x FY14 EV/EBITDA even with conservative assumptions
- Eric has proven himself once again a quality manager during a crisis

In the absence of the failed US IPO SEA would be trading at $1.20-1.30 (and would still be cheap).

Also, in my view you see the real character of a person in a crisis and I think Eric has come through the failed US IPO crisis as well as you could have hoped for. $0.95 was a lot higher than most would have thought last Friday night, the placement got away easily and upsized and is currently (touch wood!) trading well. Well done to Eric in a very tough situation.