There will come a point when we plonk STO as a contrarian play but when that is anyone’s guess.
Fundamentally the company is doing all the right things by reducing its costs and divesting non core assets to reduce debt. At some point (we think the Chinese especially) will be interested at making a tilt at STO at the right price (for us it’s below $3).
Unfortunately STO is solely dependent on oil and gas prices so depending on your view where this will head from here. Personally the downside is limited from here we think.