Seeking Alpha

SandRidge Mississippian, Permian trusts downgraded by RBC

  • SandRidge Mississippian Trust II (SDR -3.2%) is downgraded to Underperform with an $11 price target, down from $16, at RBC on concerns about an 18% Q/Q dive in production despite 20 gross new wells drilled in Q3, which the firm says is far below even the most pessimistic views.
  • The firm also lowers SandRidge Permian Trust (PER -3%) to Underperform, with the price target cut to $14 from $17, believing the time has come to look beyond the attractive yield at the risks associated with the lack of communication, operational transparency and production trend visibility.
Comments (5)
  • DeepValueLover
    , contributor
    Comments (9388) | Send Message
     
    Look out (SD) common holders...
    28 Oct 2013, 12:50 PM Reply Like
  • surfgeezer
    , contributor
    Comments (7549) | Send Message
     
    Agree SD commons will get nothing as PER's guarantee sucks up the Distrib.
    28 Oct 2013, 02:49 PM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1778) | Send Message
     
    "the time has come to look beyond the attractive yield at the risks associated with the lack of communication, operational transparency and production trend visibility."

     

    gotta love that? Nothing like a 25% price drop to get one thinking about risk!
    28 Oct 2013, 04:06 PM Reply Like
  • hhmcdon
    , contributor
    Comments (262) | Send Message
     
    Sandridge Permian Trust is actually a steal at the present price of $11.47. Something has frightened the rabbits and sheep.The best fresh information is given by Daniel Moore August 5, 2014 on SA with this title: SandRidge Permian Trust: Solid Results, Fairly Valued. This is up to date and quite detailed. The other 2 Sandridge trusts are not a good value. PER is not likely to go to $14 as RBC predicts, I would be able to buy a Jaguar with my windfall if it did, but I expect it to return to the high 12s before the next EXdiv date. I am very long PER. I try to "know when to hold em & know when to fold em" If you listened to Barrons re: KMP you lost your ass. Do your own research and take analysts opinions with a large grain of salt. Clearly most have an agenda, not necessarily the same as yours.
    19 Aug 2014, 11:56 AM Reply Like
  • papayamon
    , contributor
    Comments (1190) | Send Message
     
    Does it feel like as much of a steal now?
    8 Oct 2014, 10:48 PM Reply Like
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