Southern Oil - bad deal27 Jan 2019 00:44
From the off....hands up, i put money in here after bad research on my part, although i have been following the board for 10 years or so i should have known better but the lure of what i thought was a low sp suckered me in....so my disappointment is very much of my own making.
Now that i know better, i just dont like the business model and the way afc work....i just cant see them getting much over the line like that.
Before i get anihailated...my research is still raw/limited compared to some and i do think there might be a chance that de nora will lend a big helping hand so all is not lost.
However, the southern deal has been a disaster for shareholders and has left the company in a very difficult position re the need for funds.
After causing an initial spike (trapping a lot more in), we now find ourselves with a crushed sp that is not that far from all time lows and a cancellation of that contract will take it there in no time and i would be worried about the fall-out from that!
Beggars can't be chooser's i know but it seems to me like the kind of deal we have with Southern is loaded with risk on the afc side...sure, afc might get paid for the engineering work but thats not going to keep the lights on and given the fact that no other work has been secured...
I just don't know where they can go from here...the hydrogen charging sounds good but its pie in the sky if none of the big boys like it!