Soco Share Discussion Threads

[buywell3] 17/11/2018 23:43

Share buybacks are not a good use of shareholders monies

The BoD of SIA have proved this in spades

The destruction of shareholders money has been immense ... the only people to benefit were those SIA shareholders who sold into the buyback orders

Need I say any more

Apart from I was the first here to see this was going to become a penny share

[0rient] 17/11/2018 22:22

Well said Nigelpm 👍🏻

[nigelpm] 17/11/2018 20:25

No gloom from me. Sat ready for the ride back up. The sniping is hilarious. It's as if everyone has the benefit of perfect hindsight.

[0rient] 17/11/2018 17:42

A lot of doom & gloom on this thread :-) I've been in & out of Soco a good few times over the years. Bought a decent tranch Friday & will buy more too on any further weakness. Risk/reward down here is extremely good..more so than any other small oiler i can think off!

[kenmitch] 17/11/2018 16:51

Exactly Invisage. I was ridiculed by the resident Soco "expert" here for posting that the Soco buybacks (from memory at share prices as high as £3) were a waste of money. No doubt about that now!

But I was also convinced earlier this year that Soco was at a bargain price around £1 and so bought back again. Ended up cutting the loss.

Tempted to buy now that the share has fallen SO far and with that very useful dividend yield, assuming they can afford to maintain it. Surely not much more downside and good chance of a bounce, perhaps on a general santa rally?

[invisage] 17/11/2018 10:44

Soco share buy backs = allowing other shareholders to get out at a good price at the expense of remaining shareholders

[jotoha2] 17/11/2018 10:01

tyler , sia has fallen in share price because they stopped being a growth company , they have been living of existing assets , and like say ophr they have squandered £ millions on share buy backs in an attempt to bolster the share price , but all they have done in reality is wasted million of £

Their share price graph confirms a dismal record since the oil price hit $20 a barrel , and is now in rapid decline , where the bottom is , very difficult to tell , but its not good .

Tlw and Pmo and ENQ are the only safe havens for mid cap oilers , they will through their superior management come out of this with happy shareholders , as for SIA it will become a penny stock in time.

Look at the share price graph forthe last 5 years , not one decent upward movement , and don't be fooled by the so called experts here , they all have their own agenda.

[tyler19] 17/11/2018 09:28

Jotoha2, can you really say no growth prospects. They’ve just made one acquisition and looking for more. The share price has fallen along with other companies including some blue chips. The underlying commodity has fallen approx 20%. If you have cash and share prices are falling it’s a good time to make further acquisitions.

[invisage] 16/11/2018 23:06

Soco was buying back shares every time it hit £3 and below and the likes of ee was praising them for it back in the days.

[buywell3] 16/11/2018 22:35

One of my early posts here, and remember all those SIA buybacks at around 150p


buywell3 - 06 Aug 2015 - 09:40:16 - 15569 of 21548 SOCO - The Endgame - SIA
Surely now is not the time to be an OIL bull ?


The SOCO chart is now retesting its former low


Cash will have to be protected going forwards


Talk of giving it away does not seem to make sense as the USA shale OIL continues to hit home and Iran OIL is soon set to flow bigtime

Iran will still be major sellers even if it goes down to $30


Hence my SOCO dividend remarks .... I think they will have to stop paying them.

OIL money will soon be too tight to mention ....... by most that is

[planetgong] 16/11/2018 14:25

Hi kev,
In the 10 min interview with ed storey on the soco website, he makes clear that his wife would not allow a dividend cut.

[binarypilot] 16/11/2018 12:24

I think EmptyEnd may prove to be a very apt moniker.....

[dunderheed] 16/11/2018 12:19

Reserved for monte1, prammy and Saul Goodman.

[jotoha2] 16/11/2018 09:31

Tyler , you are clutching at straws here, SIA is on a death spiral ,their main asset is decreasing in value and with no near term prospect of growing this company , the only way for the share price is down .

[tyler19] 15/11/2018 23:18

There’s a lot of nervousness in the oil market and soco is no exception. The volatility in the oil price is likely to be short lived. I’m always surprised how everyone becomes bearish over night. E&p companies are volatile by nature, reacting to drilling news, oil price, geopolitics etc..however, in the long run a well managed company can deliver spectacular results. Also, very often analyst predictions of oil price are blatantly wrong. I think it’s another great buying opportunity for a medium term outlook. OPEC will most likely cut production soon, China and us likely to take small steps towards trade deals, just as it happened with eu, Canada, Mexico etc... let’s face it, can the world or the us face a significant global slowdown considering the high levels of debt every where? I accept there are a lot of asset price bubbles and stocks being one of them, but I suspect they will be burst slowly over time, which should be good news for oil. The main reason soco share price hasn’t picked up must the lack of liquidity and small investors having been burnt over a long period of time. Both should change once production starts to increase, I suspect over the next couple of years. I hold shares in soco and will continue to buy during market panics.

[emptyend] 15/11/2018 08:28

Slide 10 of the deal presentation makes it clear that the Merlon deal is "immediately cash flow accretive" and that they will continue to dividend out excess cashflow.No company commits irrevocably to maintain dividends at a particular level, but (due to greater cashflow cover) there is no reason why dividends should be cut and, on a two year view, there is every reason to think they can be raised on the back of rising production.

[kev0856153] 15/11/2018 07:36

Once the acquisition is complete is there any indication the dividend may be cut or are they committed to continue this level of payment?

[lauders] 15/11/2018 00:50

chessman2 - If you still believe in the story and that SIA aren't going out of business anytime in the near future then averaging down again may be a sensible move. At these levels and with such a good yield the share price will at worst (disclaimer: I am not a fortune teller or financial adviser so be warned!) tread water, but surely something positive will happen one of these days and this point will be seen as a good time to have bought down the road. If I had stacks of cash I would be chucking some SIA's way but alas I haven't and I am happier with some of my other holdings. Don't talk to me about AMER though! Another disappointment where perhaps what I just said applies?

[chessman2] 14/11/2018 20:35

Foolishly I added some at 135p in order to reduce my average price.

So much for my expertise!

[jotoha2] 14/11/2018 18:27

And another drop today , shorters have this nicely under control , admit it EE , you have called it wrong since £1.60 , come clean , are you still holding?

[emptyend] 14/11/2018 17:38

Seeing some chunky blocks change hands is overdue, so good to see (one presumes) some serious money starting to bottom-fish. I wouldn't be surprised if high volumes continued for a while until the seller is cleared out.

[emptyend] 14/11/2018 15:22

It is only fair to point out that others said that at various levels all the way down from just under £1. So if it was a no-brainer at that level...... ;-)As some point this view will be proven correct....whether that is right now is more difficult to tell - but it is a decent enough bet. 6.8% yields give a fair degree of cover.Incidentally, I think recent trading levels are the first time for many years that the shares have traded below book value NAV - which is very ironic, given the switch to successful efforts accounting at the start of 2018.

[redhill9] 14/11/2018 14:17

I've just added at a tad over 76p.

On a risk/reward basis that price seems a no brainer.

[emptyend] 14/11/2018 12:11

Quite so. A yield of 6.8%, amply covered from cashflow, and potential for substantial growth. Impairments have been taken all over the place, new "successful efforts" accounting policy and yet the NAV per share is currently 110p and likely to rise further post deal. The fundamentals are solid - and all the rest is fluff.If I had spare cash I would be a strong buyer.

[valuehunter1] 14/11/2018 11:52

For me its all about the amount of cash being generated and this is now certainly throwing off a load of cash vs current market cap. Sound divi policy too and so I'm a buyer and will wait for the market to re-rate these.