I own Santos. I bought at the very start of the year. Whilst I don't regret buying it I wouldn't buy it now until I thought the oil price had bottomed. There's no clear indication that has happened yet. I may buy more if oil hits the $60.00 barrel mark and shows some major support at that level.
I have... Friday... and will do it again shortly.... loving the prices.... shares issued are not massive.... plenty of market cap, projects and IMHO only, OIL prices will go back up to $100 in a near future... watch this stock rise quickly.....just like 2008...
STO looks a very unnatural chart. It's not only dropped out of its monthly volatility range (i.e Bollinger Bands) it has dropped out then gapped down. Nothing that extreme happened in 2008.
Six successful wells delivered during November including two wet gas discoveries Oil Business: - Four new development wells cased and suspended in PEL 91 Wet Gas Business: - Varanus South-1 discovery in PEL 513 in the Western Cooper Wet Gas project area, the first by the new joint venture with Santos - Maupertuis-1 cased and suspended on a sole risk basis by Drillsearch as a discovery in PEL 106 - Vanessa-1 production test begins in PEL 182 Unconventional Business: - Fourth well in the ATP 940 drilling campaign spudded at Amidala-1 - Hydraulic stimulation campaign restarts at Anakin-1 When OIL prices go up, it should close that GAP..... IMHO
Compare it's chart to oil. Looks like a very high correlation, but Santos is more highly leveraged to oil price. This also makes sense from a fundamental point of view as its a high cost producer. So will be more leveraged to price IMHO. (I'm using oil chart as proxy for gas)
SANTOS shares have plunged to a 10-year low after sliding oil prices meant it was unable to get favourable terms on a balance sheet-strengthening hybrid debt/equity raising. The company's shares, which are off more than 30 per cent in the past two weeks because of its high leverage to oil prices, were down 75c, or 8.3 per cent this morning to $8.33, their lowest price since December 2004. "The oil market has experienced considerable volatility following OPEC's announcement that it would maintain existing production levels," Santos said. "In response to this marked change in market conditions, Santos (STO) has decided to defer any hybrid issuance until market conditions are more conducive to issuing such instruments." Santos flagged the raising at a November 26 investor briefing, saying that it would test the market on a roadshow and revisit the raising next year if the investor appetite was lacking. Today, the company said it had no "current intention" to undertake an equity raising, something some analysts have said it may need to do to keep its investment grade credit rating.
I consider Friday's buy as a short/medium trade.... no long term investment....for myself only.... so... watching oil prices closely. Would like to get another batch if prices permit....
If that is your intentions then why not just buy oil and leverage it? Or alternatively buy a small oil producer with little to no debt like Senex?
I expect news from Santos.... I expect oil to rebound..... I don't play CFD's ETF's anymore.... not until HFT's or the volatility stupidity are gone.... I have a set of rules for myself from 2008 until now: - I only invest with "MY OWN" money - I only invest money that I can lose it - I don't believe in sophisticated investment tools anymore - My goal is to preserve my core wealth and not speculate for the time being
Santos Ten Year Chart. http://hfgapps.hubb.com/asxtools/Ch...&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M5
stocksinvalue puts fair value at $6.87, 18% lower than Friday's close. Rates Santos' 'financial health' as Poor, 'business risk' as moderate Ratings and valuation might be a bit stale though, can change at any time, specially for a volatile commodity producer. Only add it because stocksinvalue has seen STO as significantly overvalued for some time and still does. Not the Bible of course.
If it drops more I will most likely buy it again..... It it drops to $6.87, the price would be lower than 10 years ago... lol definitely oversold/underperformer ....IMHO only... I like it already....
opportunity gap? whatever gap it is I am liking it.... http://www.santos.com/library/2014InvestorSeminarFINAL_ASX.pdf Time for outdoors :lol: ... have a good Sunday mate
