RE: Kim_clay ADVFN 👏👏3 Sep 2025 09:29
Kim_clay ADVFN ....
"How many dusters, dribblers and strippers will it take for Bramhill to accept that further investment in OK is a mistake?"This is a classic issue that many small cap oilers face. Having found a goose that lays the golden eggs (many don't) and then realising that the eggs will have less and less gold in them as it grows older they need to find the next goose using the proceeds from the current one. Having invested in what looked like another goose in East Yorkshire, (apparently the biggest goose since the famous Wytch farm goose of 1973), which they were told would likely lay giant platinum eggs, it sadly turned out to be a turkey, a gobbler that can't lay eggs and just eats money. Going off to look for more geese in the USA, they seem to have found some ducks, they do lay eggs but they're a bit small and one mostly emits gas.They've just bought 3 more geese (with help from shareholders) IF they turn out to be ducks too, then the US venture is over, it'll be a cashflow stream unlikely to repay the initial investment for years. Many management teams do find it difficult to admit that the best strategy is to return what's left in the way of cashflows to shareholders as a dividend stream with minimal corporate costs and overhead, however it's often a better choice after a series of ducks to stop swinging for the boundary. I don't personally believe this is about management clinging on to salaries, rather in my view it's about avoiding effectively admitting the inability to reinvest shareholders money for risk related returns. The shareholders of course may not want this as many invested for a 10 bagger not a predictable capital distribution. Be careful what you wish for...
Sign In
Follow the stocks
