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One more thing, sounder, which I have only just noticed:
What I actually wrote was:
'SOU has always exaggerated its prospects and is now considered to be a no-hoper.'
You then mis-quoted me as follows:
" SOU has always exaggerated it's prospects and is now to be considered to be a no-hoper."
You made it look as though I myself consider SOU to be a no-hoper.
I have never said anything to that effect.
Exaggerated or selling the business?
Maestros mentioned HUR and I replied to his comment.
I couldn't care less whether you could care less about HUR, sounder.
I've spent hours writing posts arguing with people who have written SOU off and I don't need a lecture from you.
" SOU has always exaggerated it's prospects and is now to be considered to be a no-hoper."
I couldn't care less about your company called Hur. We are deliberately up for sale with an attractive asset. An end game is in sight.
HUR is absurdly undervalued, Maestros.
Not only does it have a first-class team and world-class assets, but it is now earning revenue.
Compare that with SOU.
HUR has always under-played its prospects yet has done remarkably well.
SOU has always exaggerated its prospects and is now considered to be a no-hoper.
Let's hope the market is wrong.
I wish they would sell this sucker all my oily s are very frustrating this and HUR are getting a bit boring HUR always when there is good news the shar price drops STUPID
Good post, Dark Energy. Some well made points for consideration. Thanks for your polite message.
Jez, you make a lot of sense, and you have a degree from a good University
Buy-in price is irrelevant, even though I know many people believe it is relevant (incorrectly)
If your average is over 8p, then you have already made the loss, get over it
All that matters now is where the SP goes from here
In my opinion if there is no deal, whilst the company may survive and eventually be OK, the short term SP will drop to <= 2p and stay there for a long time, so much so that your "go long" scenario effectively means you lose 75% of your current investment. I'm currently thinking there is around a 50% chance of this. Anyone thinking there is a >90% chance of this should be selling any holding
If there is a deal then the sale price could be anywhere between 10p and 150p with a very long tail above 50p, with probably a median around 35p. And no, I have no calcs to back any of these prices, its just my feeling
Also, JP neither knows, nor cares about, anyone's buy in price (except perhaps his own). He will aim to get the best price. That's it! He knows that "going long" has to be a credible alternative, but in reality is not something any stakeholder wants
Good luck on ebay
I agree, Trellis. This is turning, or will be turning, into another Brexit scenario: on one side of the fence will be the Remoaners who with their typically high averages of 50p+ will be living in fear of the LE deal falling short of their share price average. Most of these won't want to witness a loss of money so will probably opt to "go long" in the hope that a future drill can bring some much needed success and thus theoretically cause the share price to head northwards. Then there are the Souxiteers who with their relatively lower share price averages (single figures) who will be happy with a few bags return on their investment and will take the money and move on. In short, if/when a deal is presented to us, people will be voting a simple 'yes' or 'no' to it based on what their share price average is. Of course, there are always some who will sell out at a loss in order to recoup some much needed funds. Parsons has access to the register and will have an idea of what price to pitch the deal so that it has a good chance of being accepted by the majority of investors. Hence why my belief still remains that a LE pps of around £1 would make sense in order to satisfy the majority of stakeholders. Only time will tell as to whether or not we (a). receive a credible deal from a prospective buyer that is presented to us and; (b) should we receive a deal, whether or not it is accepted by investors and passed. #excting times apparently.
There are 3 types of "comfortable PI" in Sound. Very very LTHs who bought in during Orbel; new investors who have bought in over the last year at averages between 8 and 12; and others who have had the funds AND confidence to average down over the last 3 years to levels not much above current SP. There are 3 types of "uncomfortable PI" too : those who bought during the hype and have averages of 50p through to 80+p; those who averaged down when they could but didn't have the funds or confidence to average down lower than 30p to 50p; and the poor buggers that desperately needed cash and were forced to sell at crushing losses.
Even before discussing management performance, this goes a long way to explaining the contrasting views and arguments between disciples and revisionists, and those who are critics and realists. The former are "I'm alright Jack" and the latter are " Jacobins" For 3 years the facts have proved the Jacobins to be correct re the company; JP has one last shot at disproving them
The only people who support JP are, who probably bought low and sold at highs. People who bought after JP ramping at various events ie: "Legacy for your family, Nobody will lose buying at these levels(when SP was in 80s), Golden Tickets , etc, are devastated by this fall of this share and very much doubt they support of JP and his team who missed many dead lines and long dragging GSA , marketing process and not to mention his /JP's £1 million salary every year.
I’m expecting a 15-20% drop in share price today at least
KTF- yes a going concern statement is at the bottom of all statemnent of accounts. BUT normally it states that the company is a going concern, it does not often state that without a sale the company will be insolvent. Those are the company's words not mine, they are facts directly quoted from an RNS not pretend facts like you claim to keep to. You 3 are actually far worse than any critics of the company in that you try and give people false hopes in the face of all facts to the contrary.
As for showing "my true colours at last," I have been critical of the company consistently for 3 years, as you have continually told me, so it is hardly at last.
"The Eastern Morocco portfolio marketing process is ongoing and the Board continues to expect the marketing process to conclude prior to the end of 2019."
"The Company remains confident in the potential of its Eastern Moroccan portfolio which, following the drilling of five wells and the interpretation of new seismic data acquired by the Company, continues to contain a number of high impact opportunities and plays",
RNS is as I expected.
My forecast is that there will be a fire sale early next year with the proceeds just covering the outstanding debt with no value for the shareholders.
A sorry mess indeed. Only hope is if a new leader is found with ability and immediately before the current team eat the remaining food in the trough.
Sound Energy - RIP.
The auditors do specifically state that given the company's cashflow projections, the existing £11m pile won't even last a year...
"The Company's cashflow forecast for the twelve-month period to September 2020 indicates that additional funding will be required to enable the Company to meet its obligations."
They spent over £2.5M in June alone ! At least TE10 was drilled on budget and within timescales ???
ffs trellis - you're showing your true colours at last.
final attempt to bash the company before a sale?
you do realise that Going concern paragraph is at the bottom of virtually every results rns of every company on aim?
I assume you WERE aware of the bonds BEFORE you invested?
It's a standard note and we all know we don't have cash to be here in a year's time without a fundraise. What a pointless comment. That was never the plan.
It looks like your rant that we'd spent all the cash was once again completely wrong.
Everyone knows it's either a case of selling up or raising cash to keep going... A going concern qualification isn't great but it's not exactly news
"The Company's cashflow forecast for the twelve-month period to September 2020 indicates that additional funding will be required to enable the Company to meet its obligations.
These conditions indicate the existence of a material uncertainty which, were it not for the expected funding due from the marketing process, may cast significant doubt about the Company's ability to continue as a going concern."
tucked away towards the bottom and does not make good reading. It is effectively sell or bust, on top of fundraising.
Try put a positive spin on that
£11.1m cash as at 30 June & expect marketing process to conclude by end of 2019.
News blackout continues.
Half year report