RE: RNS - sale of Hawkeye interest USD 65m25 Sep 2019 18:30
Academy, best explanation I have seen borrowed from the Hurricane Energy BB where similar frustrations are felt
I have borrowed this post from hiddendepths on advfn.
I hope he/she doesn't mind but it makes a good point very succinctly and offers a very real explanation of why we are currently sitting at 43p.
"It's worth remembering that the share price does NOT reflect the value that the market places on the company. It is merely the price where the buyers and sellers AT THE MARGIN meet. This is a very different concept, one that is understood by very few.
The point is that individual buyers and, more particularly, sellers have their own reasons for taking action and most of those possible reasons have nothing whatever to do with what value the investor places on the company.
This factor creates excellent buying and selling opportunities in virtually every stock from time to time. In my (lengthy) time analysing oil companies, the best long term results have always come about from buying quality shares at times when, for whatever reason, the marginal sellers have held sway over the marginal buyers and driven the price down too far. And then waiting, sometimes for years, for the underlying value to be realised. It doesn't always come right - far from it - but over time the multibags from the winners dwarf the losses from those that go wrong.
I do think it's really important to DYOR and not to allow emotions to colour investment decisions.
HUR at present is valued so low against what we know it has, let alone what it probably has, that in my professional judgement it represents an exceptional investment at anything like these prices. Would I put my 93 year old mother into these? Yes, she has loads!"
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