I agree with Scroogy... SXY is a great company but at anywhere over 80c it is more than fair value, which is why I don't think SXY is a takeover target, realistically speaking. It needs to be down under 50c IMO - at 50c, WVAP +40% which is the bare minimum SXY would go for in a takeover IMO, would be 70c.
And even at 70c a predator would be paying for some "blue sky."
And I don't know about you guys, but I wouldn't be selling for 70c. I would want well over a dollar.
The best way for SXY to get over $1 is for them to knuckle down with the oil and drill baby drill, sell the CSG and find a partner (preferably a major willing to take operatorship) for Hornet. Get 2P oil reserves of 20 MMbbls and a TCF or so of gas at Hornet and we will be sitting pretty.
SXY Price at posting:
74.0¢ Sentiment: None Disclosure: Held
