I totally back the decision for Afren to not offer a dividend, it is important that Afren has a good cash flow and money to keep growing as a company. But in the last 8 months the SP has hardly increased at all. Back in early February the SP was 131p, 10 months on after a cracking year at Afren we're on 141p. I just feel I am not seeing much return on my investment. However, I do have massive confidence in Afren, I think Afren are performing brilliantly, already the profits are very impressive and 5 years down the line Afren will be really making really huge profits, surely daily production will be around 150,000 bpd and annual profits must be around a billion dollars a year after tax. Do you consider Afren to be a share to put away for 5-10 years rather than seeing nice short/medium term profits?
My initial reaction was that we would hear news by end Feb also but I now feel it could be sooner due to their increased knowledge gained from the previous drills. A trifle optimistic maybe but Hunt are a quality operator we shall certainly have a good wait for news on this drill.
One things for sure the SP's going to yo yo till we get a news break HSBC decreased their target on Afren at the end of August by 5p maybe were in for a spate of reratings as they've now increased target by 20p.
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