Clearer on Friday26 Jun 2019 09:28
From the Annual Report on 31st May, which is not that long ago, but it seems an eternity:
“Despite the obvious value accretion of the Seven Energy Transaction and the exploration success we have enjoyed in Niger, since announcement of the Transaction our shares have underperformed the wider index. This followed the period prior to the announcement of the Transaction during which our shares had outperformed our peers. This underperformance came despite management holding in excess of 120 meetings with investors and providing regular corporate updates through a variety of media, and appears to have been driven by an enhanced perception of Transaction completion risk. This comes despite the fact that the extended completion timetable is a result of the positive amendments to the Transaction discussed earlier in this letter. We hope and expect that, following completion, we will be able to demonstrate the full potential of our enlarged asset base and our share price will then perform accordingly.”
Clearly the management have been holding further meetings with investors. The total was already 120 meetings, and since investors are now nervous, you can be certain that further meetings have been held in the last couple of weeks.
The obvious conclusion is that management is continuing to placate investors, and the low volumes recently are a clear indication that they haven’t been panicked into selling. The degree of completion risk will become clearer on Friday, as management will have to work hard to placate everyone, including me at the AGM.
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