City Analyst1 on advfn27 Sep 2020 20:43
City Analyst126 Sep '20 - 10:43 - 85 of 90
0 1 0
Xxnjr, as I indicated in my previous post...
“When it comes to investing, what is comfortable is rarely profitable.”
Xxnjr, no investments will ever give you extravagant returns until, and unless, you take some risks.
However, risk doesn’t always denote that you will lose your money. Instead, it’s just an indicator which depicts the intensity of the loss in a particular investment. It denotes the probability of fluctuations in terms of the value of returns on investment. Therefore, what stands true is that you need to go a little harder to yield higher.
The fear of failure never allows you to win the battle.
Xxnjr, if there’s one thing I would advise you here is to focus on the audited assets which are worth 3.5x the current market cap.
But more importantly, consider the following;
At 2.05p per share (£1.8m market cap), and against a NAV of £6.3m (or 7.11p per share), Prospex Energy is profoundly undervalued. However, when you take into account the ambitious gas and electricity production targets of 2021, the subsequent DCF valuation of £13.31m (or 15.03p per share) means Prospex Energy is materially mispriced.
But here's the real kicker...
The company's on track to start monetising its gas assets in Q1 2021; the BOD have maintained their notable holdings; our largest shareholder, business magnate and multimillionaire Simon Chantler, is firmly in the long game; the charts look bullish (incredible gap up); and the volume oscillator is indicating that LONGS are gradually taking control of the stock.
And yes, the company has had a rather turbulent past that has, in certain cases, left a bad taste in some investors’ pallets. However, a close look at the company today suggests you dismiss this natural gas play at your own peril as it sports all the tell-tale signs of a ‘ten bagger’ in the making.
So, with the transformative announcements on non-dilutive funding, Selva, and El Romeral expected imminently, it would be foolhardy for private investors to sit on the sidelines on this one.
Remember...
“Buying cheap stocks is great, but buying good companies cheaply is even better. That’s a potent combination.”
All IMHO.
Sign In
Follow the stocks
