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ScottUrquhart
Jan 6, 2015 10:16 PM

Surge Energy getting ready to surge? Long

SURGE ENERGY INCTSX

Description

Like most oil & gas companies Surge Energy SGY.TO fell sharply today (-15%) and is down by more than 1/2 since the end of November.
The stock looks like it will find support at $2.80, which was tested previously in early 2013.
Current dividend (21%) signals a cut is pending. However, the company has 34% of production hedged at CAD$100 for the first half of 2015, and 14% @ $93 for the second half of 2015.
Insiders continue to actively buy. For example Robert Leach (director) has purchased over 300,000 shares since the first of October at prices ranging from $6.70 - $3.85, most recent being 26,000 @ $3.93 on Dec 19.
Obviously Surge will trade in harmony with oil prices, but it's looking like the stock will find support at $2.80. I'm long at $2.82 looking for a rebound to resistance at $5.44 (+92%) Stop loss at $2.40.
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