RE: GEX13 Aug 2024 11:31
And this was Zaks take on Sunday;
"Georgina On My Mind
We have been in full bear mode as far as the small caps since the pandemic bubble ended in H1 2021. Since then the market has been characterised by an exodus of companies, and a dearth of new listings. To be frank, we need all the new companies on the market we can get, and they need all our encouragement. As I have stated before, it is therefore all the more pleasing that the likes of Helix Exploration (HEX), European Green Transition (EGT), Rome Resources (RMR), and Georgina Energy (GEX) have all been successes in their initial dealings. Georgina is particularly pleasing given that it was third time lucky as far as the raise to get the company to market, and the shares have traded as high as 19p after listing at 12.5p after the RTO just a few days ago.
Unfortunately, given that this is a small cap, and has done well since coming to market it is prime fodder for the bears. They must be truly upset and frustrated at the success of the deal, and so the typical playbook is rolled out: the random mix of fact and fiction, the distortion of the fact, the omission of the positive and generally conflicting all the information at hand in the worst way possible. All of this amounts to a re-run of Project fear on a target company of the kind last seen over Brexit, the pandemic, and climate change. What we also tend to see in such situations is the bears relying on the evidence of those with an axe to grind against a company: it may be sour grapes, jealousy, or simply delusion. No matter, if it suits the negative argument, bring it on even from a source with no credibility. There is no balance, no “one the one hand, one the other hand”, just anything to get the share price down. And the beauty of it all, if the bears are wrong, there is no right of reply, or sanction. They just go quiet and move on to the next victim
What the bears often forget to acknowledge is that these days the due diligence on public companies, the auditors, lawyers, accountants and regulation, is intense. This means that they are put through the wringer again and again, and on an ongoing basis. Indeed, this is a massive deterrent to even the best private companies coming to market.
As far as Georgina is concerned, whatever its pluses and minuses are, they have been fully aired: the farmins, the permit situation, the drilling risk and the redevelopment opportunity. The £14m market cap already has all the negatives priced in. Otherwise like the recent broker note price target from Oak Securities, the market cap would be several times what it is currently. The bears can huff and puff, exaggerate /distort and try and instigate a market maker inspired rug pull. But to paraphrase Donald Rumsfeld, we know all the unknowns at Georgina, and this makes the stock much cheaper than its peers."
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