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16.5¢ sundance energy australia limited

Directors want 750k shares, when we only have 7m shares on...

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tt2000

4,687 Posts.

1231

12/06/20

21:42

Post #: 45197271
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Originally posted by cmonaussie ↑

You have that right ... and the older I get the more risk averse I become.

Can I just restate again
"Economically speaking, "helicopter money" does not create any real economic demand. It does provide a lot of liquidity but in the end does not make companies that are insolvent, solvent again."

The market is spooked. Stimulus is just that ... A short term happy feel good experience (yes still talking the market). The Fed is trying to telegraph the message as "softly" as it can ... as it is economically speaking "grim".

".... the Federal Open Market Committee’s (FOMC) Summary of Economic Projections indicated the Fed expects a steep 6.5% contraction in real GDP in 2020, with an unemployment rate at 9.3%. However, policymakers expect real GDP to rebound by 5.0% in 2021, with the unemployment rate dropping to 6.5%.In its monetary policy decision, the Fed projected interest rates would remain near zero through 2022 and telegraphed that its pace of asset purchases would remain at minimum at the current rate.The decision to keep rates on hold for the foreseeable future given the virus-induced economic damage ..."

My bolding. The Fed is also "risking" its balance sheet trying to keep zombie companies afloat (there was a good video of Ed Altman in Mar talking about BBB rated bonds (minimum investment grade) and the extension by the Fed to buying up to BB- (considered high yield)). This is dangerous Will Robinson ... but apparently necessary to keep the economy afloat. The withdrawl (so to speak) will be truly painful.

Yeah the market has
"priced in the loss of earnings for the 6 months and therefore should have dropped by 6 months (5%) and then caught up to where it was. Cash flows are basically deferred for 6 months (especially given debt haircuts / relief)"
and now its pricing in more losses.

I've been trimming ... seems like I should be pruning though. I mean some companies look ridiculously cheap ... but how good is the quality of those projected earnings. Make no mistake, IMO, the post COVID-19 economy will be different to the one we had before. We will still need Energy, Financials, Consumer Goods, etc ... but do we need all that consumption and who will supply it.

Damn right I'm risk averse. Hell I'm more averse now than when I started writing this post. Buy SBWI (he says jokingly).

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Directors want 750k shares, when we only have 7m shares on offer?

That's 10% of the entire company....wtff

On June 10, 2020 the Board adopted, subject to stockholder approval, the Sundance Energy Inc. 2020 Equity Incentive Plan (the “2020 Plan”. The 2020 Plan provides for the ability of the Board to grant of stock options, stock appreciation rights (“SAR”, restricted stock, dividend equivalents, restricted stock units (“RSU” and other stock or cash-based awards to our employees, consultants and directors, subject to criteria as determined by the Board. An initial pool of 750,000 shares of our Common Stock will be authorized for issuance under the 2020 Plan. The 2020 Plan is described in more detail below, and a copy of the 2020 Plan is attached to this Proxy Statement as Appendix A.

SEA Price at posting: 16.5¢ Sentiment: Buy Disclosure: Held
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