I agree with everything Thompson says, hence why I have invested in this stock. He is completely right that in this depressed market it is a great buying opportunity but will AIM investors see the potential for a great return on their investment prior to full year results next quarter that will show profit. My guess is not! there is to much herd mentality on AIM chasing rainbows rather than investing in clear fundamental that screams 'Profit'.
Simon Thompson of Investors Chronicle today rates this as a BUY: 'Clearly, investors are worried that with the oil price under pressure then this will impact on demand for SeaEnergy’s services. However, this completely misses the point because if anything the need to keep costs down intensifies when the oil price is low and R2S offers a cost advantage to operators whereby they can monitor rig activity without making expensive offshore visits. Moreover, when SeaEnergy released its trading update early last month the company reported R2S had a strong order book for the rest of the year, and for the first half of 2015 too. The oil price had already fallen 29 per cent from its June high at that point, so if major oil operators were going to start deferring investment decisions then that process would have already begun. SeaEnergy may be unloved, but there is no getting away from the fact the company’s equity is being seriously undervalued. And with upbeat full-year results expected to be released in the first quarter next year, I view the current depressed valuation as a buying opportunity.'
Company on track to achive profit for year end. Recurring revenue should close gap between current share price and sum of part evaluation of approx 45p. However SEA do attribute value to the legacy asset of Lansdowne Oil and for this reason it is hard to give this share a strong buy rating while LOGP slumbers. To this end LOPG need to rise to approx 12p for this share to be a value for money share. Do hold a small investment in this share but only recommend a neutral stance at present. One to watch maybe.
I note. SEA only hold as a legacy asset as they pulled out of oil investment a while back. So it is a bit extra on the side, the bonus if you like, albeit a small one at present. Still only paper loss at moment.
Lansdowne Oil & Gas plc share price rises of which SEA has a legacy asset of some 5.4 million and have stated they plan to return a proportion of that realised value to shareholders and share price goes down. Hard to fathom share price movement sometimes.
As we head towards the end of the year, we are delighted that the company is on track to achieve a profit before tax in the current financial year. With international growth under way, and by partnering with and serving some of the largest companies in the world we look to the future with confidence," said SeaEnergy Chairman David Sigsworth (full stop)
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