Very disturbing story this week in the Wall Street Journal on Sanchez energy.
This is why I never bought News Corp when otherwise it was a screaming buy--
Family-owned companies have a different way of doing things, that are not the best for small stockholders.
Joyce Hurley, 'grimaldi'
Sanchez
Re: Sanchez
FWIW I give the acreage in Mississippi zero value. It does appear to be close to some good wells being drilled by EnCana and Devon, two world class companies. Until they drill some good wells of their own, it has no impact on my valuation. This one is all about what they are building in the Eagle Ford.
Also FWIW, I give little value to articles like that in the Wall Street Journal. Public companies now have to deal with Sarbanes Oxley rules and the related liabilities. It would be stupid for a rich family like this to do fraudulent deals with a public company they control. 9 times out of 10, articles like that are just "noise". I could be dead wrong of course, so don't buy SN if you are worried about it. I just value companies based on the numbers filed with the SEC.
Also FWIW, I give little value to articles like that in the Wall Street Journal. Public companies now have to deal with Sarbanes Oxley rules and the related liabilities. It would be stupid for a rich family like this to do fraudulent deals with a public company they control. 9 times out of 10, articles like that are just "noise". I could be dead wrong of course, so don't buy SN if you are worried about it. I just value companies based on the numbers filed with the SEC.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group