Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.
Over on the ADVFN board there is a proposal to initiate some form of shareholder action, to stir the BoD. If anyone from here is interested in participating then register with your share holding over on ADVFN. A 5% threshold is required to proceed with any form of shareholder action, currently 2.5% pledged.
Regrettably, Lottie’s recent post is spot-on. From the outset, I have always been of the view that JW lacks capability. I’m afraid that is now proven to be the case. He is happy to take his big fat salary, make empty promises and repeatedly fails to deliver. I do not see this business moving forward with him at the helm.
Regrettably, I am not able to attend tomorrow because I am abroad. Whilst aware that I could submit a question, there would be no opportunity for follow-up, so little point. These are the questions that I would have raised had I been able to attend. If anybody attending is prepared to table these on my behalf, I would be most appreciative:
1. Past presentations have claimed that profitable base production will decline, so as to justify costly and highly speculative explanation to replace it. Has there been any geotechnical analysis to justify the claim of declining base production? Based on current WTI prices has there been a cash flow projection prepared for the business showing returns net of all new exploration?
2. Why do we not see any share purchases by executive members of the BoD? Whilst purchases are not permitted during closed periods, there has been ample opportunity over recent months, outside of closed periods! The lack of purchases is hardly a ringing endorsement by the BoD in their own exploration strategy?
JB is a number cruncher, they do not have a leader.
Consuelo, why is it that when I check into this board, it is constantly the case that you and TDF are going at each other like cat and dog. Unlike him, you are not invested here and want to see the IM project scrapped. The JR appeal will no doubt cause a further significant delay to IM, which must please you greatly. Yet you don’t give up, now doing your best to rubbish a significant contract win, which will bring much-needed jobs and will help to sustain the business going forward.
What is your problem?
Just ridiculous, what will their next delaying tactic be when the appeal fails. They should be made liable for the losses incurred by Harl as a result of this further delay. If so it might make them think twice about their actions.
For better or worse, I am still sitting on a sizeable holding so I sincerely hope you guys prove to be correct and my pessimism turns out to be misplaced. I certainly will not take the latest slump in sp as an opportunity to average down, throwing good money after bad springs to mind.
Well said Speedy! Problem is JW’s ego got the better of him. He is clearly not a man of substance, he acquired a bunch of loss making assets and has taken on astronomical debt in the hope that he will secure large profitable orders without a historic track record. It is a big gamble and appears not to be paying off. I have lost a lot of money here as have others. Any potential new investors be warned, this as a high risk for at best a low return investment. I would not be surprised to see JW forced into a fire sale of IM gas storage. the only jewel in the crown.
Trin does not have a good track record and the longer we go without news the greater the likelihood of further disappointment.
Sadly unsurprising, but nevertheless, very disappointing news. They will undoubtably have to sell IM to pay down debt then what? JW are not even prepared to meet shareholders face-to-face and by having to submit questions in advance he will be able to avoid any awkwardness. Can’t see any significant movement in share price here until substantial good news, but there doesn’t seem to be much prospect of that.
Dawski, it is good to hear that you are still about, the days of Adrian P and bottles of Prosecco a distant memory! It would be interesting to see the handouts from the December ‘18 presentation in central London when Arun set out the business case for IM. I thought I had retained mine but have not managed to locate them. Like yourself, I sincerely hope JW succeeds, at least IM ought to provide a valuable, though perhaps not particularly profitable work stream for Harl!
TDF, I don’t wish to stoop to your level of insult but you do display a degree of ignorance and arrogance. I am a well aware that circa £15 million had been spent on IM up to the end of 2018. I quoted the value of the business at that time that is not the same as what has been spent on the project.
Xenon, back in 2018, I think the business was worth around £3m, since then very little has been spent on further development of IM as it was ready to go then. It was always clear that IM would get the go ahead because of its strategic importance, the EU recognised this and part funded development. Just a matter of time, those of us invested then would now be looking at a multiple return on our investment, had Infrastrata remained solely IM focused.
Karen, as I recall the business case for IM, as presented by Arun, was predicated on fluctuations in the spot price of gas. Buying in when cheap and selling back into the market from storage as prices peaked, facilitated by kit that could store and discharge at very rapid rates. As I recall business cases were prepared for 2 and 8 caverns with a full project cost of £300-400 million and I think a sale value undeveloped of up to £100 million was talked about. Handouts from a December ‘18 presentation put together by JW and Arun provided a fair amount of detail, alas I don’t appear to have that now.