RE: Copied from another board19 Aug 2021 11:35
Gordon,
I fully appreciate the exasperation, but there is a wealth of difference between the SP impact of the large corporate you appear to be comparing 88e with and 88e.
By the time results season comes around, the large corporate will have produced quarterly forecasts on earnings as required by regulatory authorities , their banks, bondholders and potentially a myriad of others. Those forecasts are priced in as the year goes on. When the results are published in line with mere expectations, howsoever good they are, there appears always to be a lukewarm response, simply because it has met its priced-in expectations The massive balance sheet remains intact, its ability to make future profits remains intact and the shareholders can look forward to receipt of their next dividend - for many, the key driver.
88e is a tad different, as we know. It effectively has no realisable assets from which to make a profit, other than selling their leases, and a sum of money in the bank. In the attempt to prove further realisable value, they are hoping to be able to extract oil and gas. The results received this week reaffirm that this is not proven and is not on the short term horizon, certainly not without further exploration, which by reference to last years costs, clearly show it will soon burn the cash reserve and much more.
Is it any wonder therefore, that when the SP rose in massive, some would say unrealistic, expectation of the realisation of further underground assets and those expectations are dashed, the SP goes into downward spiral. Not by the mere 2-3% of the large corporate whose assets and ability to make profit remain intact, but much, much more.
Pick yourself up, brush yourself down and see what 2022 brings. In the meantime, the SP will go where it goes.
Today's legal ruling is not likely to help.
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