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STO - Santos Limited

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Well, i decided to buy back into STO on Friday, though seeing the dow down 180 points the other night Im regretting that I did.

What lead me to buy back in..well...

Volume increasing slightly over the past couple of days.

More than double the amount of buyers vs sellers.

At least 2 good attempts lately to hold above $15 failed but on Friday to me it looked like a better attempt (though holding over $15.50 looks more bullish these days).

7 day has crossed and the 21 day is close to crossing the 100 day MA.

All this leads me to believe/hope that the sp will run to about $17.50 - $18.50 based on previous support resistance.

Lets wait and see.....Im probably wrong :>
 

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hi all
anyone have any ideas why santos has risen so much today
seems to be going against the general market
maybe takeover speculation starting to build again ?
 
well santos closed above 15.60 today after touching 16.00 hopefully have a good day in US and hopefully see the break about 16.00 tomorrow??

cheers
 
Me too have no idea why it is going up but I am very happy. Maybe the forward price of oil & gas is forecasted to go up? Anyone got any research?
 
Go Nuke said:
Well, i decided to buy back into STO on Friday, though seeing the dow down 180 points the other night Im regretting that I did.

Lets wait and see.....Im probably wrong :>
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Right on this one GN, nice work! That ascending triangle you id looks to have been broken. Should move higher from here in all probability.
 

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What do people think of their equity raising? $12.50 per share seems like a good deal to me (assuming your' holding)
 
dan-o said:
What do people think of their equity raising? $12.50 per share seems like a good deal to me (assuming your' holding)
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What you have to remember is that rights issues actually adjust the pre issue price, so your entire holding if you bought at 17.09 which is last close and take up the rights issue will be valued at 15.78 per share and this is what the closing price will be adjusted to. of course if you bought before that you will have to work out for yourself what your average price per share will be. and also with rights issue one cannot expect the same dividend even if the pay out ratio remains the same. so there are a lot of things to consider not just the price.
 
First of all: Surprise equity raising is annoying to say the least..

At least it is available to retail investors as "sophisticated investor" capital raising not available to regular sharehoulders stinks.
As a shareholder I personally will be looking to take this offer on..
I have ducked in and out of STO many times and it looks like I may be forced to take a little bit of longer term view now.
IMO fundamentals of both this company and it's sectors/sub sectors are good, I was particularly liking the look of it's chart as well but I suspect that won't be looking so pretty come wednesday...

Just wondering how the offer will be put accross to retail holders now?
 
As with most of the many recent equity raisings, shareholders are almost "forced" to subscribe to avoid quite heavy dilution of their holdings.
Will be interesting to see what price STO trades at once trading resumes, ex entitlement.
I could be tempted back in if the price is right!

;)
 
I've only just begun to play the game and have been caught of guard by this announcement. I experienced a trading halt whilst holding FMG also as they sought external finance.

Santos is undergoing a capital raising. From what many of you say it won't be a pretty chart of ascending triangles when it returns... how do I protect my investment as a small time player, or is there no hope for someone in my position?
 
Given rising oil prices and a strenghtening equity market and a hefty 27% discount you will be mad not to take up the rights issue.

Santos does not pay a very good dividend but this sort of discounted equity issues more than makes up for it.

Going forward I hope they can get another equity partner in the Gladstone project, currently they hold a 60% interest. To me it is far too much. The methane to LPG process is very new and never been tried before on a large scale. It is full of risk but if it is successful the rewards are very big. I would love to see Santos spread the risk a bit more, it would be nice if they can off load another 10% of the Gladstone project.
 
vincent191 said:
Given rising oil prices and a strenghtening equity market and a hefty 27% discount you will be mad not to take up the rights issue.

Santos does not pay a very good dividend but this sort of discounted equity issues more than makes up for it.

Going forward I hope they can get another equity partner in the Gladstone project, currently they hold a 60% interest. To me it is far too much. The methane to LPG process is very new and never been tried before on a large scale. It is full of risk but if it is successful the rewards are very big. I would love to see Santos spread the risk a bit more, it would be nice if they can off load another 10% of the Gladstone project.
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I sold STO a few weeks ago as demand for oil has tanked and refiners are over their heads in stock. I see oil retracing significantly in the short to medium term until the huge cutbacks in production kick in and bring it back to current levels or higher.

After seeing the rights issue i'm glad i took my profits on STO. I would be furious to see a $12.50 rights issue so far below current trading levels.

As for Gladstone, i don't think it will be so easy to get another partner as Petronas are already in 40%. The max STO would want to see another partner grab is 20%, leaving it 40-40-20. I view JV's as spreading capital requirements more than spreading risk. They are an evil necessity of the industry and to get another partner will only make the project more difficult.
 
Well looks like that discounting hasnt gone well with their stock price... how stable is STO?? is it worth getting at 14.8?
 
The SP of most companies which have had heavily discounted capital raisings recently has taken an initial knock, eg TSE, OST, BSL, NPX, FBU. Not surprising when you consider the volume of shares being issued and the need for some shareholders to sell in order to afford the "cheaper" new shares.
As the market settles after the issue, the SP's have recovered somewhat, not entirely, because of the dilutionary effect of the issues, but enough to warrant taking a cautiously optimistic view in most cases.
I don't see any reason why STO's SP shouldn't follow a similar pattern, in the absence of any other developments but DYOR.
 
I don't see any reason why STO's SP shouldn't follow a similar pattern, in the absence of any other developments but DYOR. QUOTE.


I've just put my money to work to test the theory by buying a few on the re-opening following the announcement of a successfully oversubscribed institutional offering.

;)
 
oldblue said:
I don't see any reason why STO's SP shouldn't follow a similar pattern, in the absence of any other developments but DYOR. QUOTE.


I've just put my money to work to test the theory by buying a few on the re-opening following the announcement of a successfully oversubscribed institutional offering.

;)
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I see the offer does not close until Thursday 14/5 for retail. So I can buy tomorrow and still get the 2for5 at $12.50? Is that how you read it? I've always wanted some Santos shares.:)
 
grace said:
I see the offer does not close until Thursday 14/5 for retail. So I can buy tomorrow and still get the 2for5 at $12.50? Is that how you read it? I've always wanted some Santos shares.:)
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I don't think so.

Although "Record date" is 14 May, the mechanics of buying shares means that purchases are not "recorded" until 3 days after purchase ( T+3).
Yesterday's trading would have been "ex entitlement", or at least that was my assumption when I bought a few.
 
Well after selling up my portfolio over a month ago and sitting on the sidelines watching the market, I jumped into Santos at 13.74 a share (20k quantity) on Thursday hoping for a good day today.

Not dissapointed with todays jump, but I did expect it to go a little higher. I was hoping to sell today and take a quick profit but the price didn't hit my limit so I'm left holding until Monday open now.

Always get a little nervous sitting on large holdings over the weekend, I hope the SP continues upwards next week.
 

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