SGU Analysis via Fundamental Analyzer Software Tool (FAST)

Notes to above Analysis

Forward Growth Assumption: 1.00% notice 2014 EPS of $0.53 (which is ~2013 earnings)..estimate for 2014 is
actually $0.73 EPSbut still awaiting 4
th
quarter results.
Orange line in Chart: Graham-Dodd Price Valuation Modelvalues SGU with a target P/E of 15 which
corresponds to $7.95 stock price (if 2014 EPS inline w/ $0.73 then this valuation rises to $10.95 stock price)
Blue Line in Chart: Implied P/E Price Valuation based on Historic P/E to stock price correlation which
corresponds to $4.95 stock price (if 2014 EPS inline w/ $0.73 then this valuation rises to $6.36 stock price)
Black Line in Chart: Actual Stock Price.

Bottomline on Forward Growth Assumption: above chart using 1.0% estimate starting with 2013 EPS as basis..
super conservative..and why chart is so flat... my guess is that they are looking to grow via acquisition, and
organically thru defeating competition by using economies of scale as they grow .

SGU vs TNAP (Oil/Gas Pipeline Index) technical picture

SGU is white in chart, TNAP is green/gray (closest index correlation)
Bottom indicator (green-red-cyan) is P/E chart (currently = 7.29)
Avg P/E during 2008 to current period is 11.88. Current stock price implies an historic price discount of 38.6%
(in this simple analysis, price should be $7.96 which almost exactly matches the $0.53 2014 EPS Graham-
Dodd Valuation estimate on page 1)
Furthermore: TNAP strategically in corrective phase of Bull Market. Should see significant support in SGU
around $5.35 level. Last time SGU was down at these levels its P/E was in the range of 11 to 14. Corrective
phase in SGU would technically end with a move above $6.00 (above yellow downtrend line in chart).