UK 12:16 Wednesday, 11 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Salamander Energy (SMDR) is now a true Conviction buy for me with the shares at 104.75p. I predicate a share price bounce in the short term and a material re-rating in 4Q. I thought the interims out yesterday were positive and confirmed my thoughts from my last piece HERE
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Comments
Jonathan
Any plans to review your stance on SMDR?
Target of 250 when CEPSA walked away from take over at 120?
Oil prices remain at a low, which means that SMDR (which still makes an operating loss) is likely to be burning more cash than original forecasts predicted? This means a revenue forecast drop could well be on the cards.
At current cash burn, assuming no serious rally in oil prices, leaves about 18months worth of operation on their balance sheet, and they are already carrying a debt of $400mil. $400 – cash balance of $150mil (at Half Year in August) is $250mil negative equity, and company is currently holding a market cap of about $300mil. That is quite a steep mountain to climb in current oil climate!
A cash call may well be due in the next year or so, that is why the SONA deal is critical, because it is essentially doing the cash call without issuing equity. However, if the SONA also collapses, what then?
Your piece clearly lacks any thorough research for the private investor. While you do notify us of your interest, one wonders whether this is more about finding your own exit price after a year of flat prices except for the brief dalliance with a takeover.
Richard
Yes Chris, would be good to hear your thoughts.