Loving Sanchez!
Posted: Mon Feb 02, 2015 1:31 pm
Thanks for the info on Sanchez. I got in about a month back and the stock is soaring.
SN will need to "hunker down" to make it through a period of low oil prices, but they should be fine. They will be reporting quarterly losses for awhile, but they will remain cash flow positive. Cash flow from operations (net of interest expense) should be around $95 million for Q4 on revenues of $188 million.
Keep in mind that they will be forced to take a large Ceiling Test write down in Q4, which may cause a dip in the share price.
Take some time to study my forecast model on this one.