The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
So with the wells only needing 3m cubed e.g 18 barrels per day to be viable cost wise, we really do have an easy threshold to achieve and alot of headroom for pure cash generation. Also with the sell price domestically being so attractive t double the j dustry standard in places due to that still being considerably lower for them than importing as they are currently we look set to be doing the right thing in the right place at the right time. Being in on 50% since January means we already have the money flowing in and now it's all just profit when these wells are proven up, as costs are nearly fixed even to up production by 50% Fiona said.
Absolutely amazing management and trust over the long term. But I've recently sold out for the following reasons. Been holding now for 9 years and we are 10 years into a bull run, which is 3 years over the standard - 7 year run, before a market correction. Infact this is the first time since the beginning of recorded history this has happened in the stock market. The yield curve is on the verge of inverting, the signal of a crash for every single crash that was happened in the past. Political risk - Trump rolling back did Frank and there other regulations which were put in place after the sub prime mortgage crash. ( For good reason). I may have pulled out too early and miss out on the last couple of percent but having made hundreds of percent I'm fine with that. I'll certainly be buying heavily after the crash whether that be this year or in 2019/2020.
Or even if they get the results they want. It will be minimum 4p just on the build up to flow test. As with all O&G shares. If you want easy profit sell out on the peak before results, but risk a good results and getting a few hundred percent less than you could of if they hit big.
Was in at 3 and out at 5.5 here. Great to see it doing well but was surprised by how far the SP has gone when checking today! Well done to others in early. Going to have a catch up with news and look to get back in if this is truly on its way!
People sell low. Because 80% of people lose money ..... because they are emotional traders, not investors. Everyone knows you should buy low sell high, even those with the lowest intelligence, but what do most do, often even those with the highest intelligence .... They buy high and sell low. It's hard to overcome the human psychology and emotions involved in markets and trading / investing. When the SP goes down people panic and sell at some of the lowest prices of the year, when the SP goes up people buy because it's easy to buy then, it takes no balls, everyone is positive and you join the herd. The market cap of a company changes vastly throughout a few year, this is the weighing machine of the stock market, how much people are willing to pay (share price X amount of shares = market cap). The underlying assets and intellectual property / brand etc is the NAV, which often doesn't change half as much in that period of time when the market cap is fluctuating. This presents many opportunity's to both buy and sell when a company is trading at a premium or a discount to its Net Asset Value. Unfortunately most people don't do this rationally and intelligently and instead emotionally lose money. (Hence the ones selling now and panic buying when it inevitably starts going up) It took me a long time to learn this and then longer to be able to put it into practice consistently. Before I got to 7 figures in my retirement pot I l made many mistakes including losing my initial investment entirely (although I was 19). No matter how much you try and teach people this some are just not cut out for investing.
Even if they take this well no further, were still on target here with a very good first well drill and exciting prospect for the upcoming third well. We have to expect probably 2 out of the 4 to not be commercial, and that would still be a good success rate above industry standard. 50% is not bad at all!! If you could achieve that all over the world, you would drill everywhere!!
Yes, of course an exploration company raises cash, they are here to find something big, that's the whole play. Raise X million find some some that makes the company worth multiples of X mill. Clever BOD and news next week will mean 15+ again and funding all sorted for all of first phase. The RNS timings here aren't random.
Indeed. So far to go yet, should be at 18p base anyway, before any further news, if not arguably higher. I think we will have multiple day rises now as market adjusts and accepts new valuation. Better that way than a huge spike.
Alot of blue days coming as this sinks in! Looking further into it, better than anyone could have predicted. Who could of imagined we would find double what we were looking for never. Never mind on target.
It's good news the deramper are arriving. Means were hitting the big time. Any share that's a winner has then move in, it's human nature to be jealous, and they all know deep down where it's going, so greedily attempt to lower the sentiment in any way possible to get an entry below current price. Big day for echo! In many ways.
Exactly Joe, the currency depreciation is actually a massive benefit to us as we deal in USD. So it makes exchange rate amazing. And with oil price also going the right way and gas demand going up - all falling into place here. Can't think of a better play to take advantage of that triangle of market conditions at the moment.