Ponderings31 Oct 2015 08:05
I was surprised to see the board become a bit negative soon after the suspension. It almost seemed like a paid team - we had the obvious detractors, the realistic but negative, and the positive but wary posters. All the key ingredients of people working out of the same office. Maybe it was just a coincidence. From day one a RTO has been on the cards, and everything has gone to plan. A while back Bernie mentioned that a RTO doesn't necessarily guarantee a higher sp on return, and this is very true, but CEB is more likely to come back with a bang than many others. For one, sentiment was high until suspension and this will return (if we get assets) when we start trading again. Second, if we get between 1 - 3 assets with a reasonable amount of bopd in CEBs share, upon relisting there will be a value gap. People will buy into this to exploit that. Third, the assets will start to provide revenue from day one of signing, so even while we are in suspension we will be earning money. How many AIM companies are actually making money?Fourth, the market will start to then price in the pipeline of projects, and ultimately the gas. If we come back with three decent assets, the bargaining power of our team will have been proven, which will in turn justify future potential dealmaking value in the sp. The initial assets will set the scene, and if they are as good as hinted at we could come back with a tremendous rerate, and the medium to long-term potential could be huge.