SEA - Sundance Energy Australia

[Kremmen]

readthrough from the AUT takeover, along with AWE, LNR and whatnot

Yes, even AWE moved!! The US-based shale oil drillers have been performing really badly over the last year, though they should have improved, as all their assets are in USD and the AUD has fallen. It will be interesting to see if today's grab for AUT will turn them around long-term and whether more takeovers will occur, or whether it'll just be a blip.

 

[Kremmen]

Sundance is now in a trading halt, pending details about the US listing.
http://investorplace.com/ipo-playbook/sundance-energy-new-stocks/

 

[sirkiteman]

Is there any hope for SEA to return back to the US?

They filed for an IPO and a Nasdaq listing a couple of months ago.

Has this US listing plan changed ?

 

[sirkiteman]

I believe it will be a major mistake if they do not have a US listing. They lose a ton of exposure in the US and Canada. Wrong decision.

 

[Kremmen]

They filed for an IPO and a Nasdaq listing a couple of months ago.
Has this US listing plan changed ?

It was withdrawn on 18th April. Sounds like they didn't get enough interest.

I believe it will be a major mistake if they do not have a US listing. They lose a ton of exposure in the US and Canada. Wrong decision.

Shareholders also miss out on massive dilution. The recent increase in borrowing capacity to US$135M and sale of their DJ Basin assets for US$116M means that they can continue growing without diluting their share value.

 

[Kremmen]

SEA opened at its highest point ever today, $1.185. Close was $1.17.

 

[Porper]

SEA opened at its highest point ever today, $1.185. Close was $1.17.

Some resistance up at today's high. Needs a better close and then there could be some action. Bullish patterns in position.

 

[Kremmen]

Some resistance up at today's high. Needs a better close and then there could be some action. Bullish patterns in position.

Today's close is better ($1.255), plus it's on the biggest daily turnover in a month.

 

[Kremmen]

New highs have been reached most days of the last week. After closing $1.38 yesterday, $1.40 was hit for a while today.

 

[Echidna50]

Let's take a look to oil prices, this time from the longs side, as we all have read the bearish predictions about 50 USD a barrel etc....

http://seekingalpha.com/article/2581505-8-major-reasons-why-the-current-low-oil-price-is-not-here-to-stay

 

[pavilion103]

It appears that a very strong base has formed on this one.
A possibility to launch from this accumulation base.

 

[skyQuake]

US$ 0.14 takeover hidden in the Cleansing Notice.

What a joke!
Who even reads the cleansing notice

 

[McLovin]

US$ 0.14 takeover hidden in the Cleansing Notice.

What a joke!
Who even reads the cleansing notice

Wow. That's really taking the p!ss.

 

[skc]

US$ 0.14 takeover hidden in the Cleansing Notice.

What a joke!
Who even reads the cleansing notice

Surely that's not allowed!!!

Exactly... who clicks on cleansing notice?

And it's not a cleansing notice if you disclose something material!!

I can't believe it. What a dodgy disclosure.

I wonder what compelled them to do it that way?!

Anyone bother reading it would have had free money for the month.

 

[Mofra]

Anyone else still watching/trading this one?

Last SPP years ago at 13.5c turned out to be a spectacular buy, although some of only part of our holding over the $1 mark after offloading in the high 70s

Seems like there is a little bit of positivity in the forward estimates and the cost of production appears well below the floor price of WTC noting they're partially hedged.

 

[Parse]

Sundance added another 3,990,500,740 shares (cap raise at 5.9c) to it's register today making a total of 6,867,696,796. A little under 300 million SEA shares were traded today on market and there has been some fairly good volumes recently. All this is due to their expansion in the Eagle Ford oil fields. The new shares were at 5.9c and SEA closed today at 6.3c. It will be interesting to see how this company now performs and thus the share price. Most analysts are predicting quite a good re-rate on the share price.

 

[Sdajii]

Sundance added another 3,990,500,740 shares (cap raise at 5.9c) to it's register today making a total of 6,867,696,796. A little under 300 million SEA shares were traded today on market and there has been some fairly good volumes recently. All this is due to their expansion in the Eagle Ford oil fields. The new shares were at 5.9c and SEA closed today at 6.3c. It will be interesting to see how this company now performs and thus the share price. Most analysts are predicting quite a good re-rate on the share price.

I was wondering if anyone would bring up SEA. I sold out in 2016, but recently bought back in at an average price of 5.6c and picked them for May's tipping contest here. Price targets of major brokers are all over 20c, and based on oil prices around $55. Currently oil sits at around $68 and is in an uptrend. I think today we saw the start of the inevitable rerating as the new share glut begins to clear. Happy to be holding this one again! Definitely worth a look.

 

[Sdajii]

Glad to have bought back in! Up nearly another 10% today, my bundle is up 20% in a short period. The fundamentals are still looking great, and we got another announcement probably not coincidentally timed along with Trumps announcement on Iran. The oil price had mostly already priced this in so POO didn't jump too much, but it does give some level of confirmation on what to expect going forward. Based on broker reports, this thing is worth around 35c, currently trading at 7c after a big jump today. Even at half the valuation of the broker reports this will be a multibagger.

 

[Parse]

What do you think the consolidation they are planning will do? I am a little wary that the relative price will drop after consolidation, proposed for June I think.

 

[Sdajii]

It probably won't do much, and it's ridiculous that they ever do anything, but it will be a bit of a double-edged sword. Instos will probably like it for irrational reasons, and newcomers might think it looks more attractive than a 'penny stock', but existing holders and those who have been watching for a while will likely have psychological price anchoring which will drive the price down as you describe.

Overall, I don't think these forces will really do all that much given the big things happening in the overall picture. People will, I believe, be more interested in the hugely changed fundamentals of the company and the POO. If the POO doesn't collapse and SEA can drill anywhere near as successfully as they are projecting, the fundamentals will completely wipe out any price anchoring issues.

Up another 5.7% so far today! Good times!