Will Santos ever recover?, page-396

Hi One Man

Hey Pear, your $0.01c prediction is depressing, I do hope you are wrong !

I'm not sure it is an easy forecast predicting how much a STO re-commencement of dividend will be, but it will not be $0.01c .... on that you can be sure. I thought my prediction of $0.05c was lower than I would like.. BUT looks like I have a case of Tooheys coming my way ! Thanks, Pear !!!!

Well you were closer than me by $0.01. Congratulation on your call.

It did not escape me that Santos put out the acquisition announcement before they actually put out the accounts. I wonder where the price would have gone if there was no acquisition announcement.

Hate to be a party pooper, but the accounts prove to me the nonsense that has been made of balance sheet repair. Replacing capital for debt.
Every one is impressed about the headline numbers and the headline cash flow. But what was the reality. Profit of $0.05 per share. Double that for the year and we would end up at a PE of nearly 70. Offsetting this is the fact that the underlying profit is closer to $0.20 per share. Double that for the year and we would end up at a very respectful PE of 17.

Santos needed to make acquisition like the one it has made to grow earnings. And I am talking earnings per share not top line. Thankfully we can do it using debt.

Don't know how much cash the acquisition will generate, but I don't see much dividend growth in the short term with free cash being used for the new debt.

Good luck all.

Pear