SM has to be a VERY undervalued at 15.50

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dig4value
Posts: 20
Joined: Tue Apr 30, 2013 1:50 pm

SM has to be a VERY undervalued at 15.50

Post by dig4value »

I am watching all my energy and energy related stocks generally going green today with some rebound in WTI, but SM is still under pressure trading for 15.50 as I type.

I thought SM was cheap a 16 and change so at 15.50 it look completely on sale.

With expected CF of $4+ in 2017 SM has become VERY undervalued in my opinion. I have been selling the Jan 2018 15 puts but now I am also selling the 12.50 strike puts (for as much as 1.70).

Unless Oil really tanks I am having a hard time seeing SM down to $12 a share.

Many analysts have SM value at 30+

Comments welcome.
dan_s
Posts: 37275
Joined: Fri Apr 23, 2010 8:22 am

Re: SM has to be a VERY undervalued at 15.50

Post by dan_s »

Good well results in Howard County should draw a lot of attention to SM. I know a landman in Midland and he told me this week that their wells in Howard are doing very well.

He told me that SM's Viper 14-9 1WA well in Howard County ramp up to 1,800 Boepd last week.
Dan Steffens
Energy Prospectus Group
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