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I'm going to call that good
The value proposition I think will become clearer next year as oil and gas companies get a re rate. For now a good time to slowly increase your stake in PMG and wait. I do not lose sleep over holding PMG at these prices and would expect a double digit return in 2021 rather than a get rich quick multiple bagger.
For a company valued at £30m you get unrivalled value. Unbelievably undervalued, wind farm on scale of neighbour would generate circa £50m revenue annually. Capex circa £80m, annual opex £5m. No wonder wind in this part of the world is extremely popular! Very cash positive!!
Indeed
All decent
Few things coming along
Steady as she goes....some bad news (profit) some encouraging news (cash and renewable energy). Would not expect it to have much impact on sp.
Yes its that bad consolidation early on took it to that price and its been downhill ever since if i remember it was 12 pence then.
BUSINESS HQ2 hrs agoOil and gas independents living on borrowed time net zero drive
By Mark Williamson @MarkWHerald
Conditions are challenging in the North Sea oil and gas industry
CONSOLIDATION among independent oil and gas companies will accelerate amid the transition to a lower carbon energy system, which is likely to result in many going out of business, experts have warned.
Wood Mackenzie said the ranks of sector players are likely to be thinned out dramatically as the expected changes in energy markets leave firms facing huge strategic challenges.
“A world on a two-degree glidepath does not need thousands of Independents chasing volume,” said Luke Parker, a vice president at the Edinburgh-based energy consultancy.
Mr Parker’s comment highlights the implications of efforts to ensure that the rise in global temperatures is kept below two degrees, in order to minimise the adverse effects of climate change.
With demand for oil and gas set to decline, companies that decide to stay in the exploration and production business will have to focus on the most attractive assets in order to have any hope of retaining investor support. This will include fields that can remain profitable at low oil prices.
Some are likely to shift investment into renewable energy and carbon capture, storage and usage.
Consolidation could provide a way for firms to acquire the scale required to help them prosper amid challenging conditions or to move into new fields.
“We may come to look back on the last few months as the beginning of the consolidation that will define the oil and gas sector over the coming decade and beyond,” said Mr Parker.
The implications of Wood Mackenzie’s analysis are sobering for independents operating in the North Sea.
The plunge in oil and gas prices triggered by the coronavirus crisis has posed big challenges for firms in the area.
North Sea heavyweight Premier Oil recently agreed to merge with Chrysaor, whose shareholders are set to own the bulk of the enlarged business.
Private-equity backed Chrysaor acquired big North Sea portfolios from majors during the last downturn.
fortunehunter
Sorry to hear you have bailed. If you look at the deals that gave been done in the past ten years with other companies you can see that the North Sea is very bouyant. Equity firms have been snapping up assets that will give there investors a decent return.
Parkmead have gas oil and green energy in there portfolio
Enough to spread fluctuating prices in any future climate.
I've been in since 2010 still here and still making the odd purchase.
There is plenty oil in the basin and plenty gas at Platypus
Enough wind at Tipperty and beyond and enough cash in the bank.
Like a lot of people I saw Parkmead as another Dana and piled into the company heavily right at the beginning. Gradually it dawned on me over the years that this was not another Dana and Tom Cross seemed to be treating Parkside as his own private company, with the minimum of news, as the shares became less and less valuable. We all lived in hope that the company would take off but so far it hasn't and you have to wonder whether Dana was just a lucky one off for Tom Cross. Topping up to dilute the loss seemed the best option over the years whilst waiting for the company to realise its potential. Finally after many years I have lost patience and sold my shares, accepting a large loss. I'm sure the Cross family and Board are living well on the company but long term shareholders like me have nothing to show for years of faith except a large tax loss for use in the future!
Its disappointing but I wish the optimistic diehards who have been with Parkmead like me since the beginning and are still waiting for gold at the end of the rainbow all the best. Here is one shareholder no longer convinced it will ever happen.
Surely its not that bad! Was it ever that high?
you are lucky i am waiting for 2.77
Well, another week passes and still going sideways at the bottom of the curve.
Maybe next week......or the week after.....or........
This is going to break any day now. Gas and oil prices both up so there's a disconnect to share price.
Strong fundamentals, results next week and seems to be getting a lot more interest on Twitter as well.
Topped up today.
Its difficult Carlos. TC obviously did us well with Dana, but was it luck? Is he a one trick pony? Is he nearing retirement? Its been a decade here, and I'm sure many investors bought into the dream at considerably higher SP than now. Of course the oil markets have not run in his favour but does seem to be taking a time this time. I am here because of TC and Dana. i'm in for 35000 shares at 27.7p. Will I increase? Only if news and momentum indicate that I should
His Dana project is what drew me towards this endeavour, it was very successful so I backed the man rather than the potential of this project. The ups & downs could have provided a small claw back but it’s likely I will use it as a profit offset when the time is right. I watch it daily, more in hope than expectation. At its current level it perhaps offers a modest opportunity, but not for me. You win some & you lose some as I said, if they all won I wouldn’t be here.
Unfortunately " just a feeling" ain't going to help at the moment
Very optimistic here for next week. Just have a feeling that there will be some positive developments. News potential on so many fronts. Market is not recognising the value disconnect here. But it will. Woefully undervalued with the potential to become mid-tier very quickly. When it goes it will be a huge move.
I'm always concerned about following a dominant 'star'. That's probably the single biggest reason why I wont invest heavily here, I suspect TC dominates Parkmead strategy. but its also difficult to see past domestic issues here. We are rentering lockdown (as indeed are some big mainland European economies). But oil price is dependant on Worldwide consumption so restraint in European consumption is not necessarily going to keep Brient at c. $40
Hi Carlosd . Ive been following Rick Rule for a while and Tom Cross seems to fit my criteria for a high quality person . Just bought some more for my 3 year old Daughter's JISA. Will top up my other Twin when funds allow. If you all want a pick me up during these bad times please watch this video by Rick rule - In Pursuit of Profit: Why People Are More Important Than Properties
https://www.youtube.com/watch?v=zYwv30iLTv4
Give it a bit more time imo. PMG should do better over the winter months and the demand for oil and gas will recover at some point next year.
Hi Carlosd
We've all been there!
Do wonder why I/we put ourselves through this. I constantly question whether 'investing' differs much from gambling - it easy to celebrate the winners while conveniently forgetting the losers, and I can appreciate gamblers logic (or lack of).
As I documented before one of my winner over the years was Dana, and always kept my eye on this successor - having dipped my toe in and out of Parkmead a couple of times I bought recently at about 27p. Not trying to wind you up, my bad decisions would make you weep!
The way I look at an apparent loser is to be objective and ask myself 'if I weren't a holder would I think this was currently investible'. If the answer is no than sell. If it's yes then there is no point in selling - the paper loss is regrettable but you cant change it, its history.
Been with this one a long time, waiting for it to achieve any sort of real potential is like spotting a dodo. In here before the dilution so this has to make it to £1.90 just to see the investment back, you win some & you lose some, this is definitely a loser on those numbers!
Sometimes being a small player can be a good thing hence today a very slight drop in sp despite a sea of red in the markets. True BP did quite well too but then it has dropped mightily this year. Still cautiously optimistic about PMG and my other oil punts!.
Still picking up licenses in the GPA area can only be seen as a positive......oil companies still currently drilling in the North Sea.
Parkmead looking good for the future !
Thanks for posting, an encouraging broker estimate always reassuring but not money in the bank.