Member Info for ELSteve

Share buy backs are not the magic bullet that some people believe they are, to buy back 10% of the issued equity that some posters are talking about would cost around £30m at current share price. Firstly there seems to be an assumption that buying 10% of the shares will increase the share price by 10% or more when there is no evidence of such a correlation existing, the latest example of this I can note is AWE where a director has just purchased around 13% of the company and just look what has happened to the share price.
Secondly what you are actually doing is creating a false market by introducing a buyer so market makers and other participants can actually ramp the price knowing they can sell higher which then brings in more selling and you end up with a price that is lower after the buy back than when you started.

The best way to attract more buyers is to make the company look more attractive to invest into, I would much rather that £30m be spent increasing production and unlocking the long term potential of the company and not wasting it on short term measures that have no guarantee of success.

People calling for a buyback need to clarify whether they are purchased for cancellation or kept in treasury to re issue at a later date but personally I don't believe that from experience buybacks for cancellation provide a tangible benefit for the cost. I am also not a big fan of consolidations in the scenario that i3 finds itself in, my experience is that the higher share price gives an excuse for the market makers to drift the price downwards and it provides a platform for traders to short a higher price and gives them more room to play with.

I would rather i3 spent the money on increasing development and production, making more money is a better way than the aforementioned to raise the share price.

It was a good video to watch and I would like to emphasise the point he makes that rate of usage growth may have slowed but it is still growing highlighting the divergence between physical price and the share prices of last weeks selloff. Maybe controversial but I would be careful of listening to recession talk at the moment, the major indexes are trading around 20% off their highs before we are even in a technical recession and already the Fed is talking about the curve flattening. I am not a recession denier but it seems a lot of people have got themselves short prior to the event and if it's a softer landing than what is being predicted we could see a huge short squeeze in the markets. At the moment fear is the only driver but when the fear subsides watch for the upside. None of this is advice, just an observation.

Hope so, also noted the gap in Canada at 36 cents was closed yesterday

ARK87 I think you have made the perfect point that they are both undervalued I mean for i3 to be down over 20% from it's recent highs and PTAL around 25% it's like someone is treating these shares like a leveraged oil fund.

I think some people have got themselves too short on fear and wouldn't be surprised to see a short squeeze here. Fundamentals are that oil and gas usage are going up year on year and the recent volatility is I feel fear driven. Interesting to see that PTAL has a larger market cap than i3, considerably more debt whereas i3 has none, seem to both produce roughly the same amount and i3 operates in a much more politically stable environment. These are very quick fag packet observations so forgive me if I am completely wrong but in my mind highlights that i3 is fundamentally undervalued.

Market Makers only want the shares to fill underlying orders as they will not want to run a position themselves and get caught out by a market move.

4.5 million have traded in the last 2 days so someone has reduced quite a large holding, my take is that with no RNS out someone has either decided to throw in the towel or it's an enforced liquidation due to a margin call and with a stock this size the market makers are going to lower the price 20-30% to get the size away. I don't believe anyone is shorting this as it's very difficult to borrow market maker stock in size and also I don't feel any risk department in a professional company would allow it.

This does look like capitulation day for a forced seller judging by the price action so have bought a very small amount for a punt

I use IG unfortunately and did receive last months dividend, if you are long cfd's then they will credit you on the ex-date and long stock they will credit you on pay day

You've forgotten "Golden Tickets" !

Bloomberg is saying the price to book ratio is 0.58

It could be a possibility depending on exactly how they have hedged.

It's not Bybrook they are locked into their holding for another 90 days as per RNS

We are effectively going down, as you quite rightly say we all know how much cash is being generated but the share price or market cap is not keeping up with this increase in NOI and this divergence is a little frustrating.

I'm not entirely convinced the number of shares or day traders are to blame for the recent lack of direction. Gas prices on the CME for June expiration are up 10% in 2 days and I would expect at least some of that to translate into a price rise for i3 but not at all. Something is up but can't put my finger on it.

Looks like multiple leeks !

I would be surprised if a bigger player isn't running the slide rule over i3 at this share price given the contents of the Monday morning RNS. I3 has a market cap of £291m at these levels which includes production of 20,000 boepd rising to at least 24,000, NOI of $241m, a 20% increase in it's Clearwater Land position and no debt, I could have listed many more positives here but I'll let other people fill in the gaps. I would like to know a figure for cash in the bank but didn't see it on the RNS.

Maybe some investors are scared given i3's history regarding the Liberator field and maybe some people didn't read the 5th May RNS correctly and thought Placing meant just that, some people say the share price has had a good run but I feel the 7.5p low for the year was undervalued and the share price was around 15p last July when the shares were issued to fund the Cenovus asset purchase.

Cable has also moved from around 1.38 from July last year to around 1.23 today making i3 around 10% cheaper in $ terms which I believe adds to my opinion that i3 is very undervalued. I don't do speculation so these are just my thoughts but if a major is looking to buy some good quality politically stable assets then surely i3 must be one of the first names on the list.

The RNS has stated that Bybrook Capital will not sell or transfer any more shares for 90 days.

We don't actually know what the share price was when the deal was being arranged and as these things are not done overnight it could have been that 27p was above the market and someone was keen to buy. Market sentiment at the moment is terrible but i3's fundamentals are fantastic so when the market shakes off it's self induced depression we are well placed to push forward.