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SD - SandRidge Energy


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I really hope management is maximizing their share repurchase program at these prices. I am taking a beating on this investment and its really frustrating!!! TPG/OMEGA must be planning next steps and the only logical choice is to put this company in play.

 

Tks,

S

 

Just wondering, @wachtwoord how big is SD in your portfolio now?

 

6%

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Must say this is becoming a concern with the recent drill results I have seen. I told my self

I wouldnot ride this down again when we when got over 7 a couple of months ago but here I am again.

will stay this quarter and will be curious to  see if major shareholders have stayed. Need some positive news

or a bitterly cold winter again.

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I am with BMO investorline and they use Ford Equity Research as one analysis tool and they have come out with a buy on SD.

Not sure I have seen this before and perhaps all is not lost. To be honest more interested in news ECA is buying Athalon Energy and how the market reacts.

 

Ford Equity Research1 BUY 26 Sep 2014

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You have to wonder what these losers are doing. Bennett goes out to make presentations claiming that the company is worth well north of $10 a share and even $15 and yet we sit in the low $4's.

 

Sure the oil price has declined and there has been a big correction for oil equities but, there are actions that these ..... should have already taken. Where is the MLP for their salt water disposal system or to take advantage of "reach for yield"? Why is the buyback not fully executed already and a new one announced? Why no joint venture to allow for de-levering of the balance sheet?

 

At the current price, it is nearly impossible to entertain a take-over bid that would be acceptable. Who is the fool managing a public company that will offer a 80-100% premium for this company perceived as a failure?

 

My consolation is that TPG-Axon and Mount Kellett will feel significant pain from this investment. Based on the latest 13HR it is a significant overweight position for both.

 

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I am with BMO investorline and they use Ford Equity Research as one analysis tool and they have come out with a buy on SD.

Not sure I have seen this before and perhaps all is not lost. To be honest more interested in news ECA is buying Athalon Energy and how the market reacts.

 

Ford Equity Research1 BUY 26 Sep 2014

 

I'm also with Investorline and see Ford Equity recommendations all the time.  I've never looked into it, but I'd have to guess the recommendations are heavily based on technical analysis, probably even algorithmically generated.  The buy recommendation likely comes because SD looks technically "oversold".

 

 

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Oil dropped really badly this morning following the news that: No, Russia is not implementing capital controls...

 

I guess the whole debacle is due to the strength of the USD. If you look at when Canadian oil stocks that we follow did peak in June, it corresponds exactly as to when the USD started its ascent. Now of course the USD is up because U.S. stock markets have attracted capital flows and the U.S. economy now looks like the only spot of strength globally.

 

Then you have money managers dumping losers before quarter end and the machines accelerating any of that stuff.

 

What gets me with SD is the lack of effort by management to implement things that they have talked about for a long time or things that they can control. This MLP thing is a joke.

 

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The conversion of their SWD system into an MLP has been put on pause by the IRS...

 

http://www.reuters.com/article/2014/04/07/water-ogis-sandridge-idUSL2N0MZ16220140407

 

SandRidge Energy Inc's letter asking the Internal Revenue Service whether its water disposal business would qualify as tax-free for inclusion in a master limited partnership (MLP) has been caught up in the agency's pause of such reviews.

 

"That process has started and there was the pause," Duane Grubert, SandRidge's head of investor relations, said at the OGIS energy conference in New York on Monday.

 

Grubert estimated the delay could last for months. SandRidge is exploring ways, including forming an MLP, to unlock the value of its oilfield water disposal business it estimates is worth around $1 billion.

 

The IRS did not comment when asked if it had temporarily stopped issuing private letter rulings that companies ask for when setting up MLPs.

 

The law firm Vinson & Elkins told its clients in recent days the IRS had "paused" to review the scope of assets that can qualify as tax-free for MLPs.

 

What gets me with SD is the lack of effort by management to implement things that they have talked about for a long time or things that they can control. This MLP thing is a joke.

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Let's see if they actually buy back shares.  If they don't . . .

 

I really dont think they should. Keep the money.

They are still leveraged and really have no non core assets to sell.

 

They are all in Mississippi.

 

Yeah, I believe this was the worry when they announced the buyback authorization.  The market reacted negatively, if I recall correctly. 

 

So I feel ya on that, though I go back and forth on whether they should or should not. 

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