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With most shares investors hope for a T/O which can do wonders for the SP. I hope one doesn’t arrive in the short term because it won’t reflect the true value of SAVE with such a low SP at this present time. For those investors who took the plunge prior to the Severn deal I suspect would be disappointed; more recent investors perhaps not so. As you suggest nobody knows what will happen near term or long term. We buy our entry tickets at various points and hope for the best. I would much rather be invested in SAVE at this present time than the derisory interest rates that the local banks have on offer.
there was previous talk of us being attractive as a takeover target to seplat.
I don’t think the market is expecting dilution. In fairness the SP has been on a downward spiral since the Severn deal was completed. IMO the SP has been dragged down by the rest of the a O&G sector and I believe (hope) that after a couple of more positive quarters the market will (hopefully) wake up to see the true value of SAVE’s assets.
I’m not sure what else AK could have done to booster the SP. He has purchased more shares in the 7’s which failed to ignite the SP. Perhaps dividends may have a positive effect but I would much rather the war chest grew in the early days and debt reduced rather than dividend payments.
I have the long term view that Nigeria needs Savannah and it’s gas if the country is to move forward. Savannah has managed to get itself well established b4 any other major players decide to muscle in. Investment in the gas sector is clearly a top priority for the powers that be and SAVE are clearly ideally placed.
With the exception of a minority of O&G plays gone are the days when you could make a good amount of dosh in the short term.
Savannah’s a long term hold for me. I’m tempted to buy more at this price but every time I hit the buy button the SP tanks.
I do believe the future is bright for the company but will take a little more time than folk were initially expecting.
Loadsa buys yea but tens ( if not he hundreds) of millions of sells over the last 10/11 months.AK may know how to run a company but he don't care a fig for the sp in the short term.
Lbh or we could see massive dilution again thats what the mkt seems to be expecting ?
From AK's comments and other 'expert' views here it is clear that an acquisition or two may easily occur here in the coming months.. and it could even be significant sized acquisition(s) too.. or just small/medium additional - gas for eg - resources a possibility too, of course.. whatever, I hugely hope the market likes whichever deal(s) might occur ...it may do....or it may not do.
The seven energy acquisition looked excellent on paper and has delivered well/to plan early in; and the market has, altogether, hated it so far.. any rinse and repeat exercise has no guarantees of a different outcome, indeed logically one could easily expect a similar outcome.... but the s/p is extremely low now, in fairness and the acquisition opportunities perhaps more financially compelling again now too, and economies of scale potentially a bigger factor again too.
Whatever, AK will do what he will do .. so here's very much hoping for a different outcome from similar behaviour next time round, IF there is another acquisition(s).. nothing is guaranteed in life of course and these are the games we play.
It’s worth remembering also that there are a lot of distressed assets and some which mid tier or majors might look to offload at material discounts as they are not longer a strategic fit for some of the mid tier companies and majors. With financing rates at low rates it can act as double discount, it would not surprise me if they are hunting for other assets, however as with these things the devil is always in the detail and whether they can execute them
It’s worth remembering that 97% of accugas debt is leveraged against the accugas asset and not savannah energy the group entity. Means we could potentially seek out debt finance against a new asset or leverage the Savannah energy balance sheet.
There is a lot going on at a macro level in the Nigerian Gas space to attract new investments, and seems to me that the regulations and the governments are favouring gas projects this is likely to attract more investments in the Nigerian gas business and could make it attractive if we were to target another seven energy type transaction, attracting capital will not seem to be too much of an issue especially if we can structure another asset like accugas, especially since raising debt finance for another deal could easily be done now with financing rates at historical discounts. If they can find a right deal they should execute it with debt finance
Can’t be far off
Until the seller or sellers have finished we are stuck in a trading pattern.
It’s just a waiting game until true value is realised.
1.3m volume already, seems like it's going to be high volume day compared to it's normal average someone circling buy's before the next bit of news me thinks
Thanks for the feedback Agadem and I agree that at some some stage some news will push this s/p meaningfully up.
The latest two catalysts I was hoping would push this s/p back to the teens pence - strong interim results and II presentation roadshow off the back of interim results - have now passed and have seemingly failed - badly - to do so, alas. So, here's hoping the next news here does push this s/p meaningfully up.. and if no, the next news after that does .. and if no.. etc.. A good thing is that there should be a reasonable amount of news event(s) - potential catalysts- happening here in coming months. Another good thing is that, versus fundamentals, this s/p appears to be a nonsense currently.
Here's very much hoping that patience will be rewarded here in the end.
Agadem, sounds like news could be imminent on something judging by your Q&A
II’s having long term positions is pretty irrelevant in terms of questioning why more aren’t buying. The ones that are in are massively down on their investment. Like most of us. How patient are these companies? I don’t see them sticking around forever. My fear is they’ll take the loss and move elsewhere. This SP needs to move upwards ASAP in my opinion to keep these guys in.