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hTTps://seekingalpha.com/article/4410283-transformation-sterling-energy-represents-opportunity
Re-rate potential
McDade has an enviable contacts book across West African production and it's only a matter of time before Sterling acquire an oil field given McDade’s in-depth experience in the region. McDade could bring production assets into Sterling totaling $100 million or more without issuing a single dilution share. The current market capitalization is £37 million and predominantly backed by cash. Shareholders buying stock up to 20 pence would be largely hedged by this 14 pence cash value and the management premium that is bound to begin pricing in shortly in advance of a production acquisition.
well they state that they are in the business of preserving the cash they have, so I would not expect them to fritter it away on expensive analysis of countless projects which they subsequently turn down.
my view would be about 10% over the course of the 12 months since listing, however, i would like to see them structure a deal, whereby any asset they buy, is transferred at zero cost to afentra, however, aftentra would commit to spending a certain amount to get the asset up to speed, with the seller adequately compensated from future production returns and not from the current aftentra cash pile.
Good observation SEA7 perhaps sp will just track cash value until rumors of a deal or announcement on securing finance. Particularly if oil price continues to climb.
Question then is what cash burn will be (or at least market perception of burn until next reported).
Guesses anyone? I'm going for 15% of cash year 1. That could be a good thing though as it would mean a deal is close, execs paid full bonus.
15 seconds of research tells you the following from the launch of afentra rns dated 5th may 2021...
The team is actively screening a pipeline of opportunities, consistent with the strategy and aims to announce a transaction within the next 12 months.
.......
so, the stock sits just above cash value and it will not move until a deal is announced,sometime in the next ten months - buy now, tuck away and wait - this isnt a day trade
Why buy short term buy and wait for a deal sometime this year
So some basic research man , yes this is not Bitcoin it's an investment with more than a nanosecond flip
To many newbie investors jumping into stocks going to be like 1999 all over again.Jam today and I want it now clueless.
I didn't say I wanted action or that I'm here short term, just that I've been away and haven't caught up on what is the latest or keeping an eye on the boards. God, reign it in.
Another tonto weighs in punching short expecting a KO.
A month. A whole month....
Whilst youre at it get on the phone to that Buffett bloke, the lazy bar-stool. Value investor - pah.
I want action and I want it NOW !!!!!!!!!!!!! lol
S
Been away for a while, come back and there has been barely any movement for over a month, WTF is happening with this? There was meant to be a big announcement, im guessing this hasn't happened yet.
Exactly Sirius
McDade got paid £15.2m from 2019 to 2019 alone
Paul McDade's Tullow Remuneration 2010 - 2019 . All publicly available information
£
2010 931,924
2011 1,318,644
2012 1,286,097
2013 1,531,648
2014 1,321,857
2015 1,576,374
2016 1,607,557
2017 1,867,857
2018 2,759,684
2019 986,706
Total 15,188,348
Indeed Sirius
Bla joined 2 days ago lol and posting like he is the Oracle
Cambridge the clown not much better boards full of a few wanting in cheaoer
5 May 2021 AET listed, that is a mere 37 trading days. What a joke, just shows how fragile some people are.
Come back in a year if nothing has happened and I will be inclined to take you more seriously
Paul McDade was making 1.47M 10 years ago, that's an 84% pay cut and hardly a man who needs money; he is a millionaire probably several times over.
Richly rewarded indeed!
He has a point to prove and I've no doubt he will. If he reads these BB were behind you!
Go for it.
S
The market and I agree with you BB... so far this is a cash burn company and the only folks making money are the management, and they are being very richly rewarded for a shell company!!! Time will tell but 12p or 10p is written on the cards in my view... whoever is dumping massive amounts of stock also clearly agrees!!!
I'm sure he has an enviable contacts list but fair to ask how many would pick up when they see his name flash up.
Reading the expensive looking website and investor presentation he's obviously thinking big, real big and debt looks to be key. A pillar of the Proven Leadership slide is about leveraging the new CFO's experience with capital markets, bonds, RBL etc etc. Finance is a small world and don't forget the banks will have taken a good look under the hood at every RBL round and seen exactly how Tullow was run leading up to those successive production write downs.
Just saying I'd personally take low cash burn off the positives list and in addition to No guarantee management will secure any value accretive deals on the negatives list I'd add No guarantee management will secure finance. Shooting for big deals but being left high and dry after 18 months would not be a good look.
Still, one to watch and good luck to them. Fortune favors the brave.
Wow a member for one day lololol!!
Get back to nursery school ASAP
100 mill without dilution
Nice
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hTTps://seekingalpha.com/article/4410283-transformation-sterling-energy-represents-opportunity
Re-rate potential
McDade has an enviable contacts book across West African production and it's only a matter of time before Sterling acquire an oil field given McDade’s in-depth experience in the region. McDade could bring production assets into Sterling totaling $100 million or more without issuing a single dilution share. The current market capitalization is £37 million and predominantly backed by cash. Shareholders buying stock up to 20 pence would be largely hedged by this 14 pence cash value and the management premium that is bound to begin pricing in shortly in advance of a production acquisition.
0Â Â 0Â 0
hTTps://seekingalpha.com/article/4410283-transformation-sterling-energy-represents-opportunity
Re-rate potential
McDade has an enviable contacts book across West African production and it's only a matter of time before Sterling acquire an oil field given McDade’s in-depth experience in the region. McDade could bring production assets into Sterling totaling $100 million or more without issuing a single dilution share. The current market capitalization is £37 million and predominantly backed by cash. Shareholders buying stock up to 20 pence would be largely hedged by this 14 pence cash value and the management premium that is bound to begin pricing in shortly in advance of a production acquisition.
For you blabla dollshead
Positives - low cash burn? Around £1m a year??
Er, the new exec's salaries with pension are over that alone, £2m with bonus. Looks like 4 more on the staff also. And that's without all the additional costs of evaluating opportunities and closing in on a deal. My guess closer to £10m than £1m.
Why isn't sourcing capital on the list of potential negatives? Mcdade wants not just 1000s but tens of 000s a day production, where's the magic money tree?
Michael Taylor of IC: (he reckons 350k, 285k, 285k salaries are too high)
Afentra is a new company that has been born out of the old Sterling Energy (SEY).
It’s an oil & gas company that tries awfully hard to tell us how it’s all about managing the African Energy Transition.
This is how the company got its name: African Energy Transition.
It’s as good a name as any - and hopefully the company didn’t employ some overpaid consultants to come up with it.
At the moment, Afentra has a single asset in Somaliland that is fully carried by Genel Energy.
The company had $42.6 million in cash on its balance sheet as of 31 December 2020.
That’s around £30.5 million at these levels.
Afentra is currently worth £32.5 million at 14.75p.
The burn each year is around £1 million, so the company is currently trading at 90% of its cash levels.
One of the first things I like to do when investigating a new company is to check their salaries and check their shareholdings.
Why?
This will tell me instantly whether they’re an owner or a highly-paid employee.
Source: Afentra Annual Report 2020
Straight away, that looks like a highly paid employee to me.
But further down we come to the shareholdings.
We’re not told what price was paid for the stock, but the shareholder register looks like it had a cleanup around 10p.
That makes the purchases:
Paul McDade (CEO): £226,700
Ian Cloke (COO): £173,000
Gavin Wilson (NED): £268,166
We’ve also had PDMR dealings since then - £149,990 from the new CFO. Nobody forced her to buy (I assume!).
And another £29,764 for the COO Ian Cloke.
These are some fair buys in my opinion. Directors can’t buy and sell on a whim like we can - so it’s money they’ve locked away for the long term.
Looking at the chart, it stays on my watchlist for now.
I’ve set an alert for 18p. It could be one to watch for the future.
Positives
• Experienced board who are aligned
• Valued almost at cash
• Low cash burn
Negatives
• Potential opportunity but also vulnerability to a low oil price
• No guarantee management will secure any value accretive deals
Since when did anyone give "guarantees" !
S
Downtrend amplified... Why buy at 14p when you can buy at 12p!!! More stock sloshing around in the background than at an Amazon warehouse!!
Big shout out to Richard Griffiths selling his 15p shares to me at a loss. Very charitable sir, thanks !
Stockton mutha fooker!