|Sovereign Oilfield Group
||EPS - Basic
||Market Cap (m)
|Oil Equipment Services & Distribution
Real-Time news about Sovereign Oil (London Stock Exchange): 0 recent articles
|rockabilly.: Nice one .....no answer jot?
Re: Current share price....told ya|
|rockabilly.: Has this share leapt back up again......nope......is it likely to? Maybe, but only so a couple of arsholes...maybe even just the one, can run off with your cash. Waste of space boys and girls. I'm keeping an eye on this one, and will watch any rise and fall in the share price with interest.
I'm looking to have the dealings in SOGP investigated folks....just so ya know :-)|
|pbracken: SOGP is not a traders' stock, superchip (notwithstanding the recent spike). The spread is a disater and liquidity is often dreadful.
It remains touch and go for SOGP, imo. The debt is still too large in relation to revenues, so that's where the management (presumably) is focusing its efforts. If it can get the debt down to reasonable levels and if trading continues to improve, it will enjoy a considerable re-rating. But those are big 'ifs', which is why the share price is in the gutter.
Definitely worth a look, but high risk nevertheless.|
|pbracken: The FY results (to March 09) are due end of the month/early September and will not be pretty, to say the least. It's what SOGP says about prospects since the debt was restructured and reduced that is going matter. Burgess is confident that with oil stabilising well above $50 and the cost of rigs massively down, SOGP will benefit from a growing demand for its products. The Fabrication Division is (always was) a decent business, and now freed of supporting the loss-making DDS and crippling debt and interest rates, it should be able to show it.
Next year's EBITDA should be around £6m (maybe more). SOGP's EV (debt plus mkt cap) is around £28m. Assuming interest charges of £2.5-3m (perhaps less) that provides an operating profit of c£3m. Given that SOGP nearly sank, some may reason it is fairly valued at 10p a share - it has yet to show it is out of the woods.
But for me, what makes SOGP attractive as a speculative BUY is that for the EV (assuming stable debt levels) to grow by a mere 20% to £34m, the share price has to quadrupple. An EV of £50m would equate to a share price of 130p. Seems outlandishly unlikely, I know, but if trading does pick up...
Of course, meanwhile SOGP will be trying to get the debt down further - a scenario that proffers further upside were it to succeed.
High risk, of course - and don't forget that the full year report will look awful. The BOD is likely to 'kitchen sink' the results, thereby draw a line under the recent travails, and argue that the current FY will see the company return to (modest) pre-tax profitability. Whether market believes the story is another matter.|
|tsmith2: PUGUGLY - I think they have, its not the amount its whether there is sufficient interest cover that should concern you.
Management holds 60% so if I was them I would take the thing out via an MBO. The company no commenting can only mean no reason for the share price fall apart from someone trying to sell out and MMs making them pay a heavy price.
usually such selling is mistimed..|
|willz: Why is this so out of favour now?
Very little news coming out, low volumes and big dip in share price in recent times. Since mid March has lost 30% of its value.
Has it grown too big too quickly?
Have its acquisitions been too costly or are they not pulling in enough profit?
Sovereign Oilfield share price data is direct from the London Stock Exchange