STO

A long, long time ago, I was recommended STO because it is likely to be takeover target once the South Australian state government's interference with protecting it is lifted.  That was a long, long time ago and it still hasn't happened.  However, the takeover possibility is still there.  The question is WHEN?

Yesterday, it declared that the LNG project at PNG is bearing fruit (with increased dividend) and another gas-condensate discovery has been made in Browse Basin (with Chevron and a Japanese company as partners).  The share price jumped a little.

Yes, I did buy STO but it has not been an elegant stock.  And in another portfolio, I earned my STO when it took over ESG which I bought at a very low price.  Luckily STO took over ESG as the state government allowed protestors to dictate its CSG policy.  Until a strong government is elected in NSW, CSG will have to wait.

Even though the PNG project has been forecast to be very profitable (for both the partners and the PNG economy), there is not a lot of strong positive effect on STO or OSH share price.  For that, we will have to wait till another profit jump, coupled with a big lift in dividend pay-out.