To me ...an O/U is the preferred platform for clay targets ..and for birds in the field. I find the sight plane on the SXS's ....create some issues for me / and most of the SXS's are very short and light ...which I don't like.
To me a SXS is a novelty ....but not a gun I want to shoot much of anything with. But I primarily feel that way - because of a combination of things ...the sight plane ...and they don't "Fit" me...so virtually any SXS - I'd have to restock the gun to get it to hit - where I look - and substantially change the length of pull -- and put some more wood in the grip area ...but the guys that like them / really like them...
I would not recommend cutting the barrel of that 16ga down.../ your budget is pretty "thin" so I understand you want to do something with the gun to make it more useful but ...I think its a plan you'll regret down the road ...and it'll render the value of the gun next to worthless...( if that matters).
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