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In 6 weeks time this will be chased up awaiting the next set of resultsThey are bound to be exstremely good whilst also being in the middle of the winter season.aimho
Really surprised at the level of drop here.
Twitter suspect No. 1!
“Really surprised at the level of drop here”
Why? People who bought when there was very obvious value have taken profit.
If you were to buy in now you need a compelling story beyond just gas prices (gas prices being the driver of the recent price surge).
Current SP look like a reasonable ball park valuation, maybe a little low (50s probably still reasonable).
Gambier,
after the sell the new crew exit stage left... given a large crew from Twitter this time round.
You can also invest in the successful news!
Driver is the increasing cash and recent/on-going operation successes (OK driven by gas prices.)
50's seem reasonable to me also for now. So there is no difference in opinion!
Higher possible with new wells on-going converting C2 to P2, on-going asset sales and whatever corporate actions the swelling cash provoke.
You have it In a nut shell OF plenty to wait for here imo
I have a spreadsheet which is accurate to professional valuations 50% of time.. Not sure the JKX is accurate but I expect year end sales to be 79m and given that its all driven by sell price ( I did allow for low Russian sales value), COS doesn't change but profit increases almost with difference of selling price. ie., your making 1 dollar at 2 dollar sell price so if sell price goes to 4 dollar, sales double BUT PROFIT goes to 5 dollar....... This is JKX and if I convert their profit to assets and NAV this is a 103p share
5 dollar is 3 dollar, but point is that that cash exceeds sales
“Higher possible with new wells on-going converting C2 to P2, on-going asset sales and whatever corporate actions the swelling cash provoke”
Agreed. Well success + successful asset sales + new strategy focusing on Ukraine + resolution of legal disputes + sustained high gas prices = possible move into the 60s - 70s. I can very well see that.
However, many people who are late to the party are just shouting gas prices and cash generation. Much of that is already priced in to the SP. Gas prices are not the reason to buy in now, they were the reason to buy in when the SP was sub 20 - a cash generative business with very fine gas assets in a lowish gas price period brought down by an unconnected global pandemic. A great value buy.
To buy in at this price you must believe that the company can capitalise on current gas prices by making a lot smart moves and some doing some great negotiation. Then hope for some luck at the drill bit. Nothing wrong with that belief, but there has to be a realisation of that being the compelling story.