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Gambier - The price of gas doesn't have to rise for the SP to get to 60/70p. Every month at the current high price (or even lower) is putting money in the bank - the more money in the bank the more pressure on the SP to rise. If JKX do bank $30 million over the next 3 months the SP will rise. If they sell the Russian and Hungarian business's for decent prices it will go even higher. In the near future the SP will jump around a bit, but it will move in the right direction before the next update.
“Gambier - The price of gas doesn't have to rise for the SP to get to 60/70p”
I didn’t say it did, that was the claim of another poster. I merely asked, according to that claim, what the gas price would need to be.
“Every month at the current high price (or even lower) is putting money in the bank - the more money in the bank the more pressure on the SP to rise”
But that is objectively true, it isn’t a new discovery for the market to make. And nobody is going to magic new gas out of nowhere in the next 6 months, so gas prices are going to be strong and that will be reflected in JKX cash generation, that is a certainty.
So something in addition to this will be needed to make a jump into the 60s or 70s. If you buy in at the 70p you will need think that it is going to go to 80+ in order to make that a rational investment. Gas prices and cash generation is leaving the SP at nearly half that.
I’m asking for the drive to those much higher SPs. At the moment people are offering nothing beyond what is already objectively known by the market.
So, disposal of assets? Maybe. Ending of court cases? Maybe. Drilling success? Maybe. Announcement of a new strategy?
your either a bull on commodities or not. so little now with a company that is confirmed to be making good money is about what they do today or tomorrow its all global, macro economics that dictate the direction of the commodity prices and what is coming next.
so in the next four months are commodities staying strong, going higher or are we going to see drop in demand and loss in prices? potential good inflation head as the costs tend to be passed straight onto the next customer but not always. invested and watching this one until xmas, more to come.