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SD - SandRidge Energy


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It later turned out that there is no way to understand those assets because all the important well data is confidential.

I would agree... a lot of resource stocks are simply too hard.  When these companies sell assets to private buyers, they will often open up a data room for the private companies to do due diligence.

 

Oil & gas companies could release more information on things like expected decline curves, volumetric estimates, estimates based on pressure, etc. etc.  Without that type of information, you haven't really done your due diligence.  The other approach is to only work with ethical managements (SD is not one of them) who are also in the top percentile in terms of running a company.

 

*I made money shorting ATPG.  They lied repeatedly in the past, insiders were selling, and they had negative operating cash flow... it was a really obvious short.

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ItsAValueTrap let me know about your next short.

In retrospect it was the famous story stock that over promised, under delivered, was over levered, and never faced reality. It was a bit obvious.

 

Hopefully TPG comes through on this one. I plan on holding. I think the assets have value.

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ItsAValueTrap let me know about your next short.

In retrospect it was the famous story stock that over promised, under delivered, was over levered, and never faced reality. It was a bit obvious.

 

Hopefully TPG comes through on this one. I plan on holding. I think the assets have value.

 

What I care about is when the solicitation result will be out? I bought some $6 call options for next June.

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ItsAValueTrap let me know about your next short.

 

Read my signature lol...  I covered my JCP short at a nice profit, still have open short positions on JOE and PRXI (underwater on both... :(  ).

 

As far as Sandridge Energy goes, I never really researched it.  17.9% of the float is short according to Yahoo Finance... the most flawed stocks around tend to attract high short interest.  As a long investment, SD would automatically go into the too hard pile due to the following red flags:

- negative cash flow

- constant equity issuance

- it doesn't make sense for investors for there to be so many sandridge companies.  The pure play sandridge companies are handcuffed into their own sector... this is an unnecessary obstacle to intelligent asset allocation.

 

It might be a good short... but it's not like I am shorting it or have researched the company enough.

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ItsAValueTrap let me know about your next short.

 

Read my signature lol...  I covered my JCP short at a nice profit, still have open short positions on JOE and PRXI (underwater on both... :(  ).

 

As far as Sandridge Energy goes, I never really researched it.  17.9% of the float is short according to Yahoo Finance... the most flawed stocks around tend to attract high short interest.  As a long investment, SD would automatically go into the too hard pile due to the following red flags:

- negative cash flow

- constant equity issuance

- it doesn't make sense for investors for there to be so many sandridge companies.  The pure play sandridge companies are handcuffed into their own sector... this is an unnecessary obstacle to intelligent asset allocation.

 

It might be a good short... but it's not like I am shorting it or have researched the company enough.

 

I think for shorts, timing is way more important than pure long investors.

Shorting merely based on fundamentals with no hard and clear catalyst is not likely to be as profitable as longs. Have you checked some technical analysis books like the ones from Wyckoff? Before I came to fundamental analysis, I was pure TA. I read through almost everything about TA and I think wyckoff's volume analysis is the only one that makes sense. Combining this with your fundamentals will probably work out better.

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Well shorting, in my opinion, is a whole art onto itself.  When you start doing it, you start learning about things the hard way... e.g. buy-ins, borrowing costs, short squeezes, crazy stuff like Volkswagen (I have no position in that), etc.  Shorting common stock may not really be worth your time.

 

I am generally skeptical about technical analysis.  Some of it probably even works (e.g. anything that takes advantage of excess volatility / Mr. Market, some of the stuff which take advantage of stop losses, etc.).  But I guess I'm more interested in how the world works and in fundamentals... and I'm turned off by TA witchcraft. 

 

As far as my performance... I made all my money shorting and lost what I made on my longs (I loaded the boat on QXM/XING and got burned because the CEO ran off with the money).

 

Anyways this is getting off topic...

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Well shorting, in my opinion, is a whole art onto itself.  When you start doing it, you start learning about things the hard way... e.g. buy-ins, borrowing costs, short squeezes, crazy stuff like Volkswagen (I have no position in that), etc.  Shorting common stock may not really be worth your time.

 

I am generally skeptical about technical analysis.  Some of it probably even works (e.g. anything that takes advantage of excess volatility / Mr. Market, some of the stuff which take advantage of stop losses, etc.).  But I guess I'm more interested in how the world works and in fundamentals... and I'm turned off by TA witchcraft. 

 

As far as my performance... I made all my money shorting and lost what I made on my longs (I loaded the boat on QXM/XING and got burned because the CEO ran off with the money).

 

Anyways this is getting off topic...

 

sigh. I lost a lot of money on CCME too. I even did some DD and found that they have the operations. But still, the scale of fraud is out of my imagination.

I never want to buy one more US listed Chinese stock.

 

What longs do you have now? I am sticking with only solid management now. If management is questionable, I will just pass. I learned the lesson the hard way through ATPG and CCME, and, to some extent, SD, which I think still has hope of making a buck.

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With CCME there were some reports by short sellers alleging fraud before the stock price collapsed.  Unfortunately I did not find such reports for QXM/XING (though in hindsight I really should have researched Real Gold, as there are reports of fake mines there).

 

What longs do you have now?

Check my blog... http://glennchan.wordpress.com/

 

I'm still unsure if owning junior miners is a good idea... I own Noront and KWG.

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SD sold Permian basin asset for 2.6 Billion

http://finance.yahoo.com/news/sandridge-energy-inc-agrees-sell-211200500.html

SandRidge Energy, Inc. (SD) today announced that it has signed a definitive agreement to sell its Permian Basin properties to Sheridan Production Partners II, a privately held Houston-based oil and gas company, for $2.6 billion in cash.  SandRidge announced on November 8 that it was exploring the sale of the assets.
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I was just about to post that. Will be interesting to see what TPG says about the pricing.

We have catalysts all around for this one.

Myth,

 

        Not knowing all the details of exactly what was sold, but TPG was valuing Permian for 1.5B....

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You are forgetting the WTO.

 

I wish we never bought the GOM and had just sold the Permian (as suggested ages ago). Ward has come around, but is late to the party. I would have prefered tuck in Gulf assets at 2x cash flow, WTO, and Miss Lime.

 

Eventually unload Gulf at 4-5x cash flow when possible. The oil price in the gulf is nice though.

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You are forgetting the WTO.

 

I wish we never bought the GOM and had just sold the Permian (as suggested ages ago). Ward has come around, but is late to the party. I would have prefered tuck in Gulf assets at 2x cash flow, WTO, and Miss Lime.

 

Eventually unload Gulf at 4-5x cash flow when possible. The oil price in the gulf is nice though.

 

i would be happy if they get rid of GOM asset now and do a buyback.

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