there is hope for sea, page-2

I think its quiet simple naga000

SEA has negative eps, negative cashflow, no headroom on debt, liquidity issues and average development expense management. Their existence is dependent on something which is completely out of their control

You seem to justify a share price purely on basis that company survived last couple of years - not really what I would call a sound investment thesis.

SEA has to compete against some pretty good oilers in AUS for investors money - for example if a person invested in Beach instead of SEA they are hardly going to sell beach for sea at this stage.

SO on a relative basis no real catalyst to invest at moment let alone on standalone basis. That is if one has not invested purely on spec basis or just looking for gain on a few cents.

Is there hope going fwd - yes if oil averages 65$ for next two years, SEA can fund development w/out additional financing, improves asset quality and grows asset base acreage - of course as oil rises so does new acquisitions/leases.

The issue at moment is SEA is on a fine line and AUS investors (i mean insto who are the ones that can move the SP) cant justify the investment until a more viable LT future arises. If all SEA does in a rising oil environment maintains a flat b/s and no discernible ROE irrespective of EM's ability to survive (which at end of day was due to a CR more then anything) then SP is going to go nowhere.

In other words if you go to say goldies or Morgans (if they covered which they dont but just using as example) and say would you push this stock because eric is at helm and he steered the company thru oil collapse fullstop then I can tell you what the answer would be.

There is no sound thesis at moment to throw money at this until there is a sustainable oil price around average 65$ and sea has sales of around 150mm or more. If guidance for 2018 if alot better then 2017 and not some pie in sky number like 2017 then yeah you may start to c the sp move up around 13-15c (aus) mark.

I would say in conclusion its false to blame aus market just because they use sound investment principles rather then pure exhuberance like the average US investor after all it was the US which caused GFC and who voted TRUMP as president.

its not being nagative its being smart