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Oppenheimer recommends using the pullback in SandRidge Permian Trust (PER -1.3%) as a buying...

Oppenheimer recommends using the pullback in SandRidge Permian Trust (PER -1.3%) as a buying opportunity based on confidence in Permian assets. PER has unduly suffered under unwanted headlines at the parent company (SD +0.7%) as an activist investor calls for the ouster of CEO Tom Ward. The firm is less comfortable with SandRidge Mississippian Trust (SDT -1.4%).
Comments (5)
  • rmdonovan
    , contributor
    Comments (55) | Send Message
     
    PER, which I own, would be very likely better served by new leadership at Sandridge by the ouster of Tom Ward and his minion stacked BOD.

     

    1. Does anyone think the price of PER increase with a change in leadership at Sandridge? ; and, Would effective and aggressive drilling of the trusts additional wells create more shareholder value in the near term?
    20 Nov 2012, 03:46 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2559) | Send Message
     
    I dont see SD pushing it, they will probably just stick to the schedule. They will make more money deploying their capital to pure SD wells than going above and beyond the script in PER.
    20 Nov 2012, 04:18 PM Reply Like
  • tommye51
    , contributor
    Comments (5) | Send Message
     
    Under the sell or breakup of sd how would these trusts be handled? Not sure what to expect from a selling of the company if that happened.
    20 Nov 2012, 04:24 PM Reply Like
  • sidnal5
    , contributor
    Comments (55) | Send Message
     
    PER and SDR are much better off with SD than the uncertainty of
    new trustees and management.
    20 Nov 2012, 10:05 PM Reply Like
  • rmdonovan
    , contributor
    Comments (55) | Send Message
     
    Clayton is very likely on target. However, the current management is running SD (and therefore the various trusts) as if it were their personal "piggy bank".

     

    The valuation of PER has declined because of management's financial actions and governance confidence issues and if SD "tanks" PER will go with it.

     

    I would think that anyone that's long SD, PER, etc. would want many improvements in management, governance and the BOD to raise the market valuations. The best way to raise the valuation of PER is to increase its EPS which means more production.
    21 Nov 2012, 10:51 AM Reply Like
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