SQZ Worth a closer look at what is happening

23rd May '23 by lightningtiger

17 comments 1552 reads

Stockopedia is Ranking SQZ at 92, with 9 screens long. Quality is97 Value is 92. The only thing needed is a rise in the share price to complete a much better picture.

Revenues for2022 are showing £812M & £1,286M for 2023.

Net profit for 2022 shows £178M & 2023 £312M

5 directors have been buying this year.

2 major shareholders have bought 96.9M shares by Mercuria Holdings & 7.6M shares by Craven Walker. Also bought this year.

There is a 14p dividend coming up in June going XD & paying out on 27th July this Year. Worth about 6%.Stockopedia showing 9.52%

Analysts forecast 61.64% .above the price.

This share is undervalued according to VectorVest.

Is it the right time now for the share to recover?

Unlock with Email

Unlock with Google

Already have an account?
Login here

About the Author

Lightningtiger

Premium Member

700 club gold member. Anniversary yesterday 1/10/2013. Recently returned from New York with a wish to see Wall Street for myself as a bit of a satisfying accomplishment. I first got interested in investments when I was a financial advisor for 14 years. I learned a lot & went to quite a few investment seminars. The one I remember particularly was with Fidelity. They visited the companies that they invested in and held them for a long duration in their portfolios. The other thing was with different currencies that they could buy a particular stock with and of course sell it if it was favourable with another currency. This was potentially more risky of course. It was not long before I realised that all the money from the insurance premiums had to be invested and who was doing it. We used to sell investment bonds where 5% was allowed to be taken tax free once a year on the anniversary of the policy which could run for 20 years.There was a choice of Managed, Property, or Equity to invest into. It was at this point of time that the Property fund went up 40% in less than a year. A simple comparison with the Managed and Equity funds showed the difference. I was soon taking a keen interest in unit trusts and shares, looking for things that were going up and the highest that they had been and bought them. I bought a software package with Up-data which enabled me to be much more efficient, putting stop losses in. Drummed into my head was cut your losses and sell when a stock breached the stop loss and let the profits run. Another stepping stone was to buy myself a Rolls Royce silver shadow that was chestnut brown in colour. The reasons were threefold. 1. That I could afford it. 2. The two managers for the insurance company that I was working for were called Douglas & Rolls. 3. I was still single. As well as doing the insurance business I joined an investment club in Basingstoke and became their chairman. We closed it this year sadly because of ill health with some of the members. Now I have a portfolio that I am able to take out (if & when I want to some cash) just like the insurance bonds but much more flexible. I enjoy the technology stocks and have taken profits several times from Arm Holdings which is the only share that I have held for many years now. Having just got this Stockopedia yesterday (first saw it at an investment seminar in London earlier this year) when I noticed Dart Group (DTG) so that is now in my portfolio too. I suppose you could say I am an analyst & a chartist. It was good to see my portfolio already has Globo, , Blinks, Clingen ,Dart, Wanddisco, opay,Easyjet ,LLoyds Arm Telicom Plus(which has doubled and a bit more but then started to drop so I have just sold almost half and re invested the proceeds into ASOS.) In conclusion I hold about 20 shares, and have just INCREASED my holdings in Globo about two weeks ago, and noticed someone has reduced their holding with Globo to 3%.I hope they are not still holding the poor pawnbroker shares (guess who) -40% in one day followed by further catastrophic drop. A good case for a stoploss . Join the 700 club and put some money to work I say. more »

17 comments

Snowbum

23rd May '23

Had a few drams so gonna call this query as I see it…. Yes (entered 18/05 @226.95 isa & 281.1 spread bet). Brent prices turning up…. Spot US gas also likely turning up ( breakout then inside bar) - now more ‘hitched’ to EU gas prices since nordtream ‘event’…. Bargain stock imo.

Logical David

24th May '23

I believe now is a good opportunity to purchase Serica Energy (LON:SQZ) because the market typically looks 6 months ahead and 6 months takes us into the winter period. I was recently reading an article which was anticipating gas prices increasing by 300% between now and winter which would feed into more profits for SQZ. Also, all the problems from last winter still haven't been fixed, mainly gas storage. Hence if we have a cold snap there is the possibility of running out of gas and power cuts.

Silver Moon

27th May '23

To buy Serica Energy (LON:SQZ) as a new holding or add M&G (LON:MNG) to a current was a pressing question 2 weeks ago the day I left for a 2-week break. I bought the second option and then forgot to take the laptop with me. On my return yesterday I bought into the first option without finding your post, lightningtiger, with the dividends collected meantime and am reassured that we are thinking on the same lines so thanks for this.

Rusty2

30th May '23

They do look good value, now, share price is below 218p to buy, however oil prices are down considerably today. I have topped up today.

Cowie19

30th May '23

Also topped up on SQZ today

john2

13th Jun '23

The thing that puts me off is that the Stockreport shows estimated total revenue of 1291 £m in 2023 but only 1200 £m in 2024.

steve30

28th Jun '23

Serica looks like a bargain - but why is the stockreport showing a net profit wipeout in 2024?

(Net profit 2023 £207, 2024 £7) on a fairly constant revenue forecast (2023 £1243, 2024 £1191)?

What am I missing?

B-bull

15th Jul '23

Serica Energy (LON:SQZ) seems to have all the right attributes, great StockRank, Quality and Value, very low P/E too, yet the share price doesn’t seem to correlate with the oil price directly. Since the ex dividend date particularly, feels like it’s falling regardless of the intermittent rise in oil prices, any ideas?

Rusty2

15th Jul '23

I don't know what is going on with the forecasts, they seem to be all over the place. Compare todays with 5th July, 2023. I think the large fall in profit forecast has hit tge share price.

Oil price has risen recently but then the $ has fallen especially against the £.

Stockopedia figures are not always reliable.

B-bull

15th Jul '23

Yes perhaps a few elements to consider re £:$, just seems a bit of a opposing trend to what appears to be the solid residuals and prospects looking forward for the company

Harry Hindsight

15th Jul '23

Is not Serica Energy (LON:SQZ) 85% gas. Big rise in Mar 22 but has fallen back Mar 23. Bit of a mad chart for an essential commodity.

B-bull

16th Jul '23

Good point, comparing the profiles, can see the similarities, with a further drop away in the last couple of weeks, perhaps just the continued effect of it being ex dividend?

KevinS1

16th Jul '23

With the Tailwind deal I think it became 65% gas/35% oil. I still think there is a large glut of shares being held by those that never wanted the Tailwind deal - I am hoping that these don't hold back the SP for too much longer.

I haven't seen a target price from a broker for a while, but the Tailwind deal was suppodsed to be earnings enhancing from the start. Let's hope for some good news this month and we start to see a rise in the SP, but the market doesn't like UK G&O co's at the moment.

Olly Daney

16th Jul '23

Does anyone know the all in costs per barrel they are operating at

Thanks in advance

lightningtiger

31st Jul '23

Good end of the month for SQZ with the 14p dividend paid out and the share price bouncing back 17.4p today to 241.14p. Not sure what the "all in costs per barrel" is Olly Daney , but they are currently in a good profit situation, & my colleague Paul M from VectorVest will be happy with his 6.5k dividend payment this month.

It is very sad news to say that the MD Dr David Paul of Vector Vest died this morning after a short illness in hospital. Our thoughts and prayers go to comfort his family & friends at this sad sad time.

john2

31st Jul '23

I assume today's price rise was the result of this morning's news that the government will encourage more oil and gas exploration.

Rusty2

9th Aug '23

Nice little rise today, is it tied to the rise in gas prices ?

Unlock the metrics for all these stocks and more...

Take a free trial

Facebook Twitter Youtube Instagram RSS

This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.

Unlock the metrics for all these stocks and more...

Take a free trial

SQZ Worth a closer look at what is happening

Unlock the rest of this article with a 14 day trial

About the Author

Lightningtiger

17 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...