Opinions
Josef Schachter
SDX Energy Inc.
SDX-LN
BUY
May 01, 2018
$1.040
Stock price when the opinion was issued
oil
gas
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COMMENT
Trading has been halted for a week or two because of rumours of a reverse takeover. Trading has been halted by the London Stock Exchange until SDX either does the deal or does not. He has no information about the takeover. He still likes the company because it is significantly increasing production from discoveries already made, in line with expectations it has set at conferences. All the things they’ve talked about, from an operational point of view, are happening. He thinks the stock is cheap and he assigns a $2 target to it. But valuation might change with the details of the deal.
oil
gas
PAST TOP PICK
(A Top Pick Mar 16/18, Down 29%) They are talking about de listing on the venture. They have no debt. He has a $2 target. If you do not have access to the AIM, you have to check with them for trading capability. He is going to hold. He thinks it is very cheap. He likes it a lot and does not like that they are de-listing the venture exchange. It is majority European owned.
oil
gas
Excellent news recently, with drilling success in Morocco and Egypt. They have lots of drilling to do. They will probably double production from 3200 boe/day to 7500 to 8000 by the end of this year. They are getting lucrative natural gas prices, $12 US, in Morocco. He has a $2 target for this year and a $5 target for the next 3-to-5 years. He thinks the price could back down in May and June, He thinks May will be a critical month because of the potential Iran sanctions and the potential change in production after elections in Iraq. If oil breaks $60, he expects a small decline in these stocks. This company reminds him of Centurion Energy, which was a natural gas play in Egypt that went from $0.66 to $12 in 4 years. Doubling production in a year, which SDX is doing, is awesome.