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Razorman,
Interesting that you say you are happy to sell out for 30-40p (which I think is a repeat of an earlier post) yet you then oscillate to talk about recovering previous big losses. So you have chased big hopes before and yet seem willing to let this potential huge one get away from you?
Razorman,
It’s a curious approach to value PRD based on what you need to clear losses elsewhere - fair enough for you personally, but nothing t9 do with the dynamics here, either low or high.
I know what I said would be low, I would be looking at it from a personal perspective only, it would clear a huge loss from LGO-CERP-BPC-CEG and leave me in a good position after 6 years of chasing the market. I’m just getting fed up really. One last push, dig deep PG and prove to me that micro cap CEO’s can after all be trustworthy.
If I were PG I would approach a Family office and offer them a deal, maybe Warrants with a high exercise price, locked in for a year. Not direct dilution, but allowing funds to unlock our current predicament, PRD can move forward rapidly and strengthen our corporate position.
There should be a balanced deal out there
Hopefully PRDs present incarnation will be short but not brutish. My expectation was at some time in the first 8 months of this year a share price posting a closing value of 60p plus followed by middle of next year significant monetisation or complete sale realising certainly more than £2 /share. My response to an offer of 30-40p would be an easy no thank you . My trust in the management has only increased.
I would find it difficult to turn down 30-40p, if it was a buy out especially if tax liability was removed.
We seem to be getting lots of publicity in French media over the last 48 hours
Sefton, what range would you expect an offer to be cheap/not acceptable/a raid ?
I agree, there is going to be some serious action in this H1.
IMorning all,
I think the point made by GRH to be a very real concern and one that has been giving me sleepless nights for quite some time.
There is a massive discrepancy between the current SP and the value (if one uses the CPR NPV as a proxy for the value).
The CPR put the NPV of PRD’s stake at $592m (£432m). That is around £1.44 per share.
Based on that CPR and its embedded NPV, PRD should be able to fund the next steps in a way non-dilutive to the shareholders (some form of project finance).
But, howsoever that financing is achieved, there is a lot of clear water between the current about 5.5p and £1.44 per share.
I believe the stock is massively under-valued. But my view does not matter on its own (I don’t have a blocking stake).
I would hope that the company has engaged in a raid defence strategy and is talking to some serious players that would take up decent sized positions that would be known to be solid - and thus a deterrent to hostile/opportunitistic interest.
I cannot speak for anyone bar myself but my read of the BB is that that there are quite a few shareholders who would be prepared to hold to destination, rather than take a cheap offer.
At an NPV of £432m (on just one of its assets), this company can be very attractive to certain strategic investors that would then form an excellent buffer against any cheap offers.
I would hope PG is looking at that route.
Evening
Folk are not going to like this
But the disparity between SP and cheaply realisable value is now SO great
((I have never witnessed anything like that level of disparity))
That I think PRD could become subject to a takeover
Maybe hostile
It sounds improbable and indeed a hostile is a rare thing in small E&D outfits
But if the bidder is sufficiently large and satisfactory to ONHYM it could occur
As to PG's 15% equity...of course that would need to be squared off
but I think there are several holders on here who would jump at the chance of a decent premium...
I say that as there are vanishingly few people who truly understand the scale of what PRD is sitting on...so would likely sell out too cheaply
I am actually wondering if a big facilities management company might try
It's unlikely maybe
but everyone in The City said that East of Scotland Onshore PLC was un knock over able
Until I went hostile
and bought it!!
Make no mistake...something is going to happen here
And PRD needs to be prepared with its defence kept updated
Regards
GRH