re: another underwhelming announcement - jojo
Hellyeah,
I'd go as far as to agree that STU is not the screaming bargain it was, and also that the news over the next 3 months (baring a large find, or an extracontinental deal) is looking likely to be unimpressive.
However the metrics on STU, in particular production/capitalisation, and reserves/capitalisation look pretty good compared to the companies you noted. Esp when you consider PRRT for AED,BPT and AZA, plus high risk and untested management for AED. I bought quite a bit of STU recently, but continue to look closely at most you mentioned (not AED) as they are also good companies IMO (and have held, do hold, or may buy in future).
STU is producing now, and as Jojo reminded us, is continually drilling. They are producing incremental reserves additions, using all their considerable cash flow and 2 rigs on 65% to 100% owned targets, winning reserves that will quickly repay the investment.
They have next to no cash sitting in the bank at 5%, no dilutionary capital raisings to the favoured, all dry wells coming out of pretax income, and run a lean and both technically and commercially competent operation. Still looks an excellent and underrecognised business model for growth, fit for the times.
Regardless, I still didn't like today's announcement. They need to improve investor communication, in particular explaining dissapointments and delays.
Entropylord
STU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
