A shocker12 Feb 2018 18:48
"We�ll see Wednesday... Usual aim overreaction." (tidd)
"the Govt Pension Board were interested in buying more TLOU cheap. This may be them playing it long! And then again it may not. What is puzzling is that the Retender is limited to the existing tenderers." (olderandnowiser)
"Fingers crossed for more clarity after the update but for now it's a shocker and certainly not an outcome I'd even considered." (Superjim)
"don't say its a good buying opportunity" (Bythesea)
...All of which I agree with in parts, myself. But there I was, drinking an after-hours beer in a bar, just bought a nice jacket I'd been watching in the sales and had been marked-down a bit lower, looked at my phone, and saw this.
Ouch. Double, triple, and quadruple ouch. Essentially all my 'on-paper' profit (as yet untouched) in this share wiped out at a fell swoop. On AIM, at least. Fortunately (maybe), my own holding is on ASX, but they've now got the heads-up and there will almost certainly be a similar (if maybe not so drastic?... we'll see...) reaction.
Well, how does one react, when sitting in a bar enjoying a beer, and reading this? Initially, run home and hit the sell button. Or maybe not. Have another beer. Then trot home. And try on my new jacket in front of the mirror, and reckon I've now got it at a bargain price.
Now turn on computer and look at this again. Break open another beer. Don't hit my broker's site and that red button. Feeling a bit more relaxed. But shocked. Because I absolutely didn't expect a share I hold to plummet like this.
But also... (now thinking, rather than knee-jerk reacting), can't help wondering what the heck is going on?
A few days ago, I looked at the BSX (Botswana Stock Exchange) index, and found that over the last few months it's gone down, quite bigtime. Relative to others. It puzzled me, but being an oilman rather than a 'finance person' didn't want to post about that here. It might have invited comment about me being some sort of 'deramper', or something like that.
I don't know any more about what's going on than anyone else posting here, but can't help feeling I have to wait. A couple of days at the minimum, because the RNS says very little, really. The paragraph extracted from the Govt's response can't be anything more than the tip of an iceberg supporting it.
Essentially, we need to know more about this decision, and speculation won't help. The fundamentals of the company in terms of reserves (to date, and to be updated) haven't changed. Nor, (presumably), the technical aspects of the proposal made. So instead, it might be assumed that what's happened is some function of 'local' (like one third of a continent's) politics, rather than anything else. And with no 'racial', nor any other reflections implied, that's way out of the hands of AIM and ASX investors, big or small.
Just for once, I'm very glad that the default for posting on LSE is 'no opinion'.
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