Since rejecting Harbor Energy’s takeover bid on may 20th, shares of STO have dropped over 10%, which is inline with the drop in global crude oil prices.
Despite the fall in the share price, CEO Kevin Gallagher has been firm that the company (and shareholders) will be better off and will see the benefits of their $2 billion cost cutting plan over the next few quarters.
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Our ALGO engine triggered a buy signal in STO at $5.50 on May 30th.
We see good support in the $5.30 to $5.40 area and would suggest adding to long positions there.
We don’t rule out another offer from Harbor Energy in the $7.00 per share area sometime in the future
Santos
