RE: Dividends v Buybacks20 Oct 2022 16:53
Hi Tony,
I have not found any company as good as I3E trading on less than 2 x cashflow. I am always mindful of that.
But I think other stocks out there are likley to grow very rapidly, for example on news, or even iliquid stocks being picked up in large quantities. I am looking for 50 - 100% capital growth in 12 months, exactly like what happened here. I still think Cairn capital will want to sell in to any rise here, like others including PI's. So I dont see fast growth happening again here. Steady yes, but not fast. I have exposure to I3E as mentioned, and it is one I never worry about. A buy out would tick the growth box I am looking for.
Are you still in EOG? I think that has potential, off the back of Wressle output increases imminently. (For example).
Its not as great a company, but I feel the share price is more likely to rise rapidly there by next spring time. I have exposure to all 3 Wressle companies, though all are more expensive when compared to I3E, but I see an obvious catalyst. I have healthcare, copper, cyber etc all with similar catalysts.
But to tackle the first point you made, the share price here has declined since the summer, thats over 1/4 of a year of losses - down 25%, which is hard to watch. Today it was possible to buy under 23p (which I did!). I dont think it is justified at all, but that is the market. Perhaps I3E is too liquid to gap up etc, which is kind of what im looking for.
I do also hold I3E in my pension which fits better with your reply, but my thinking above is regarding my cash on hand, and trying to maximize opportunities. One final comment which might add a bit more colour. My pot was reduced by 80% last month to pay off my mortgage. This was always my first priority and main objective from for investing. I3 gave me about 30% in gains off my mortgage. Yes the dividend yield was 2x that of my interest rate, but I was willing to accept certainty having lost bit in the past. That is the reason my pot is smaller now, I had to bank those gains for the sake of my family etc.
One thing, I have noticed, regarding risk. I am getting a little uneasy about this well that is cleaning up. Mentioned in the financials then the interview. Does it take that long? 6 weeks. Hope everything is ok.