Hi OM, as always there are LTH's one omits from any list unwittingly so apologies! Re deramping - not possible at this level sadly!!! The only way is up but I got in early around 1.20p many years ago bought some more, sold some at 4p and then bought as we retreated and small buys at 0.7p when the BoD took a load and finally at 0.16 two days before the first 0.10p placing and that really peed me off if I'm honest and then to have the second one!! Wow, one needs the patience of a saint. Put it this way, I'm genuinely unsure of my average now but suspect it's at least the 1.20p possibly 1.50p so I need between a 12-15 bagger just to break even. With a (relatively!) small investment of around £5-10k, I could get my average right down to the 0.30/0.40 level but I'm just not sure I want to anymore. I hope other LTH's have better averages and, if I came across MAGP now for the first time, I'd pile in as some fundamentals remain solid. However, the days of MAGP ticking ALL the boxes are a distant memory and they are now beginning to resemble every other non-communicative AIM company. Real shame - I'm more sad than angry given the huge faith we all placed in them originally.
Hi all, I continue to stay generally in the background these days (for obvious reasons of not much to say or add and also busy elsewhere). I'm personally staggered by this last placing tbh - for the sake of the frankly piffling amount of cash, I'm suprised the BoD didn't stump up the cash - how much of a boost would that have been to our flagging spirits.
I am baffled by the lack of any clear strategy here - when everything was booming, news was coming so fast it was difficult to keep up - if the situation is now at rock bottom, surely NOW is the time to be going hammer and tongs at growing our production capacity for the longer term and yet all that has happened is that we get rid of 'unprofitable acreage' (for which we paid a good price) at knock down prices. For all the BoD's 'experience', they don't seem to be showing much to their credit right now.
I hate de-rampers or de-ramping - this is not intended as such but sometimes the facts need putting out there - like L1onheart I have zero appetite to add, even at these prices, unless the BoD show some balls and change the goal posts.
Frank at St Brides used to try and respond but I haven't emailed him for some time. What we have is skeletal information and need some flesh on the bones in terms of strategy. I was under the impression recently that we had divested the non-profitable wells and had good income producing ones that made money even at these POO levels so, I ask again, why another Placing at 0.10p???? BTW, best regards to Bakoven, Ribsky, Boak and Mini-Boak, we have all been here a long time and perhaps our day will come but, whereas a few weeks ago I thought I would substantially average down when next in funds, I now find myself almost feeling 'good money after bad' - not a sentiment I ever expected to feel on MAGP. As always though, GLA
L1, I agree entirely and echo your point that insofar as the Placing goes "we have no good reason for it." Magnolia had enjoyed a band of significant Long Term Holders who I suspect are now disillusioned with RFW & SOS not because of the low POO but simply as a result of a lack of communication. They lauded new additions to the Board; are we aware of any benefits? They tell us in cursory terms that we must have two nasty, value-diluting Placings to drill; are we any the wiser as to why, what alternatives are available and what are the potential outcomes? All of that said, I suspect in common with most holders, I see little point is selling at these levels and will simply consign Magnolia to the [very] long-term "put that down to experience" draw. I do hope RFW and SOS take note but like Bakoven my personal experience in getting a response is that they have been ominously quiet.
My feeling is still that we have a very experienced BoD who may surprise us all by taking advantage of the low POO and picking up some competitors on the cheap. In that respect, if indeed that is a strategy, we have the most knowledgeable BoD in terms of identifying excellent land prospects in the area as that is SOS main day job. What seriously aggravates me is not only the first, but then a 2nd Placing at 0.10p - it just kills the value and I agree that we should be using the Credit Facilty not Placings to fund our future. Bitterly disappointed especially as we have had no good reason for it. Anyway, still here for the Long Term but confidence in BoD deeply dented. GLA
Guidedog7 - Anything that I say now would be a kneejerk reaction. I certainly have some prickly questions for SOS/RFW but, given past evidence, they wouldn't be answered. This group of long-term holders, on the whole, has stuck with the company since its AIM listing in November 2011. Generally, we have treated it differently; i.e. unlike those also-rans that have littered the LSE bbs. It seems that our special respect for the team is yet to be rewarded.
In my case, I said that I would see it to the end-game. That hasn't changed. Any ideas I had about adding millions to the stake are scuppered because management has not come up with any solutions to an awkward problem. I suspect the biggest fly in the ointment is a marked slowdown in payments by our principals.
My hopes rest on the outcome of the November OPEC meeting.
Good luck with that. Comma with the BOD are seriously lacking over the last few years. Most likely due to the tin hats time with the POO. But there certainly should be more than we have had. Certainly a different attitude from the management we saw in the fledgling years.
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