• daviddscbs
    Anyone have any cmts. on the Synder Brown writeup on $FST. You Go to SumZero.com and register as a "basic" user.
    5/29/14
    Reply (9)
    • daviddscbs: Main part of their thesis on $FST is the merger with Sabine Oil and Gas.
      5/29/14
    • Austin Newsom: FST is undervalued based on the merger going through. I worry about the leverage of the combined company, but EV/EBITDA ratio looks good
      7/30/14
    • Austin Newsom: FST is undervalued for clearly identifiable structural reasons: 1) Sabine is a young, private company that recently changed its name
      7/30/14
    • Austin Newsom: 2) Forest stock has performed TERRIBLY over the past few years. Who is still interested in buying it?
      7/30/14
    • Austin Newsom: 3) Valuing the combined FST-Sabine entity is hard since Sabine is private
      7/30/14
    • Austin Newsom: 4) Many potential investors are staying away due to the largely natural gas (as opposed to oil) reserves of the combined company
      7/30/14
    • Austin Newsom: 5) The overall transaction is small (current combined market cap of around $1B and FST is at 250M) so no large institutional investors
      7/30/14
    • Austin Newsom: 6) Many smaller value investors don't like to get involved with analyzing E&P companies at all
      7/30/14
    • Austin Newsom: 7) Pretty minimal amount of sell side coverage for FST - and none for Sabine that I have seen. No one from the sell side is pushing FST
      7/30/14