Share price makes no sense at this level, really.16 Sep 2020 06:17
I appreciate that it takes time for an under-rated share price to find its proper level.
Fear of buying at too high a price is very understandable, the corollary being that fear of missing out is also a big motivator, well for me at any rate.
If you look at the fundamentals of Prim, some of the investments have real potential, as has been demonstrated by GGP.
In reality, there is nothing like a bit of Golf Fever to get people out of bed in the morning, see what I did there? and a bit of Gold Fever helps as well.
Back to the old adage of 'Cut your losses, and let your profits run' has never been truer than for here and we are about to have the costs cut massively, with some better management, come what may.
Some of you will have been in Rockrose, where the takeover bid price looked okay but not great at the time of offer, and by the time it went through was way less than the cash in the bank, with 22,500 bopd coming in, and the oil price had gone up 50% from memory.
I am not suggesting that there will be a takeover bid, and it won't be coming from me, but we are sufficiently small that a wealthy investor that wanted a decent chunk of GGP with a whole load of stuff thrown in for nothing, then PRIM would be a good purchase.
If a bid came in now, and GGP kept romping up, by the time the deal goes through it would be a steal.
Who knows the future, I certainly don't, but I do know that there is no logical reason for our share price to be anything less than sixpence.
Make your own analysis and decisions, but Warren says 'The stock market is a device for transferring money from the impatient to the patient' . This adage seems to have served him fairly well, but you may have a better strategy than him, of course, for which I respect your judgement.
Obviously, in the Covid-ridden times, none of wants to be a patient, but I believe that patience will pay dividends.
So, for you out there that have your limit sell orders in place for tomorrow, you may like to reconsider your positions before the 8 am bell.
I can see us doing 5 to 10% today.
Open at 4.7 pence, close at 4.95 to 5.2 pence.
Any close North of 5 pence would be a very strong message to the market indeed.
Let's compare notes at 4.31 pm, although it does depend largely on GGP remaining firm, of course. We all know that already.
GLA .
Dana
Have a great day one and all.
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