There is of course another category of so called investors in the oil and gas industry, The poor fellows who have been paid off in shares by O&G companies that do not have enough real money to pay their hard working employees.
Common practice in the industry, I am sure you are well aware of this practice Tim.
Tim, I know very well the types of investment vehicles institutional investors place in. They can place money anywhere as long as their clients are aware of the different risk levels and sign their rights away. There are clients who are daft enough perhaps greedy enough or just rich enough to take on very high risk gambles. But there are not that many, people like that.
That is why Institutional investors don't generally risk their clients money in One Trick Pony companies, and that is what SLE is. And its pony is stabled in a country with a massive reputation for fraud, political corruption and instability and terrorists who are attacking the very investment you are talking about, oil and gas.
If the stable was to burn down, all is lost leaving the clients with no hope of recovering their money. It would leave the fund manager and the institutional investors reputation in tatters.
No, they wont be risking money on SLE. This is evident by the fact that it is taking so long to raise the money for a deal that still appears not to be done. If it wasn't for Tosca, who know exactly what they are doing with their (very very) Private clients money, SLE’s pony would be down the knackers yard.
In our world, the world of the average joe investor and normal institutional investor, SLE is only for the hard core AIM gambler who should be well aware of the massive risk and not bet any more money than they can afford to say "cheerio hard earned" to and no one else.
I am however perfectly happy for you to express your opinion, thank you for continuing the debate in a semi civilised manner. And yes, there is more negative than positive to consider when thinking about the high risks involved in placing money in the oil and gas industry, especially over the last few years.
Sid the other day you did not know that funds can invest money where ever the terms of the fund allow them which is the most basic of investment vehicles; and now you talk of complex derivatives driving an sp down - exactly what complex derivatives perhaps you could explain or are you just talking from your backside again trying to paint a negative picture of SLE.
Your right shorty, Tosca have made loads out of SLE, probably, they control half the shares so can use complex derivatives to win without the company going anywhere but down. That's what hedge funds do. All clever stuff well beyond your mind I would suspect.
Redeye, there is no dividend, only talk of one, and we all know how often talk becomes reality with SLE.
Therefore institutional investors will NOT be interested, not until SLE shakes off its historical failure reputation. Remember the CEO has a history of leading failed companies. New investors do your own research on Mr. Fanning's success rate in his business ventures so far.
Institutions may watch and wait, on the sidlines. They have many better companies with a good performance history to place their clients money in.
Institutions don't like the massively high risk of AIM companies with a very poor track record. I thought you would know that being in the industry. LOL
--------SLE will be added to the buy list now of many II funds, and those that have not been allocated shares in this current placing will have to acquire them in the open market. -- . our current ii holders will continue to accumulate in order to provide income to their funds, as this now looks like a steady and improving cash generating stock. - -Any stock required, either by our new or existing ii's, or by those who have to close an existing open short position, will only come from the small amount of stock weakly held by private investors. -Once that loose stock has been taken away from PI's, it will not come back into the market until a much higher SP is achieved. - ----If any PI can resist the temptation to sell into the higher opening SP, then the longer term gains are considerable. The growing cash generation coupled with a share buy-back scheme, which will see an ever reducing number of shares in issue, will see a steadily rising dividend payment and a strongly growing SP. - -Hold on to your stock.
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