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STO - SANTOS LIMITED


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Risky buying what is a falling stock but taking a few STO on board because a short squeeze might happen any day here. 7.7% of float is shorted and at some point they will want to cash out (or maybe they already are within the churn?)

Asset sales pending. Market seems to be getting it's mojo back for the moment. Merger activity going on and STO in the mix to get some benefit if someone wants their stake in PLNG. GLNG to be fired up by the end of October....

Still wouldn't put alot on it given their debt load and stop is not far away, but happy punt on a few thousand shares at this price.

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WTI down over 3% overnight...and the markets creaked and rolled over again.

Hmmm, average down or bail? Not sure but I struggle to see how a company like STO could be worth about what Arrow sold for a few years back...Granted it has this little issue with $8.8 billion in debt but I think they can halve that without tapping markets.

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  • 2 weeks later...
Macquarie rates Santos STO as Outperform - The broker has joined in the now popular game of figuring out just what Santos could sell to repair its balance sheet.

 

The broker does not believe selling non-core assets such as WA & Northern Territory and/or SE Asia will go far enough to solve the balance sheet issue alone. Selling the GLNG pipeline infrastructure would not go down well with S&P, the broker suggests, thus threatening STO's credit rating. The only real solution is to sell its stake in PNG LNG.

 

The broker believes that even if key assets are sold, the residual business (mostly GLNG) will remain compelling, offering an attractive free cash flow yield. Outperform and $7.50 target retained.

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I would have thought the GLNG news would have boosted the sp.

 

WPL's and others have been in the data room looking at assets and STO was rising slowly until today ..makes me a little suspicious about whether STO is also going to be the recipient of a low ball offer.

 

 

 

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  • 3 weeks later...

Had a look at the short positions report from 1/10 to 7/10th and STO shorts actually increased over that timeframe from 94.2 million to 95.2 million shares. This equates to 9.38 % of the issued securities

 

Fairly odd considering the share price has rallied from sub 4 to high 5's..I was expecting to see a drop as shorts were closed out.

 

 

 

 

 

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  • 2 weeks later...

This just in: Santos has rejected a $6.88 per share takeover proposal from private equity firm Scepter Partners, describing it as "opportunistic" and failing to reflect fair value for the company's assets.

The board met to consider the "indicative, highly conditional and non-binding" proposal from Scepter, and decided to reject it, the indebted oil and gas player said in a statement on Thursday.

Santos shares are up 9.2 per cent at $5.94 in very early trade, still well down from more than $12 a year ago, as the company suffered from the slump in oil prices and high debt levels.

Scepter's shareholders including "a syndicate of ruling families", ultra high net worth industrialists and sovereign wealth funds, Santos said.

Santos is undertaking a full review of its assets as it seeks to reduce its circa $9 billion debt burden.

 

 

Read more: http://www.smh.com.au/business/markets-liv...l#ixzz3pFRPlqnW

Follow us: @smh on Twitter | sydneymorningherald on Facebook

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wow, you are on the winner for your timing to buy this dog! rejected 6.88....hmm expecting more to come. imho

well done!!!

 

 

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