The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Because share price means nothing, market cap matters, and its currently similar to companies producing double the barrels with no debt.....
Thought id check in on RBG, having briefly held it 4 years ago or so. t cant agree RBG is a great business, look at the 5 year chart! 232p down to 17p.... with some well known investors apparently backing the truck up all the way DOWN. Perhaps its a recovery play from these levels, but thats more akin to gambling.
In these situation all people focus on is their perceived future profit and not the current risk.
The trillions isn't really going into the economy thou is it? It's mainly providing liquidity in the markets? So the real economy vs the markets, will be interesting to see how much they diverge ...
Have you seen one of the broker notes? Pretty interesting chart with decom etc.
https://twitter.com/OilinvestorAl/status/1154323944666804224?s=19
Sounds about right, is that pre or post tax, also we have various tax rebates/ reliefs that substantially reduce it. Also believe majority not due till late 2020s at earliest, decom always coming down AND being pushed further out in field life extension etc.
I've tried to ask this a few times. No clear answer. Would Imagine its further down the road than first contact . Closer to when detailed negotiations/ nda's etc maybe. Imagine it's a very grey area from preliminary discussions to agreed offer.
Lol, ha, yeah it's not the evil MM's. It just more being sold than bought, supply and demand as large holders and cavendish rebalance. Cavendish have 1.7million shares as of a week ago so obviously their selling a load. Hopefully not all.
Aye, trump is just playing a game, he puts tough man stance, then back pedals, then he will do some deal, it will be rubbish, but he will frame it as a win. People will believe him.
Dont think he wants to go into election with having caused a fresh recession through trade wars. More he wants to go in saying look I've redone all these bad trade deals we had....even if he hasn't really changed anything...
I'd dont understand how you cant afford rre? Is that a joke or you thinking the number of shares you buy for £x has any importance?
It's just some consolidation going on after being suspended so long and such big sudden rise. Funds selling becausecthe have to / were before suspension. PI taking big profit off the table.
What's very promising and showing the true strength is how the close from the gap up is being held and lack of volatility on this quite normal pullback.
Just give it a little.time..
I'm expecting a large acquisition or even PE buyout/merger . I would have thought a divi would have already been issued/announced if that was the plan so assume a deal is already in the making for them not to put a small % of that cash back to shareholders.
See twitter thread re decom and cash build and possible worth.
https://twitter.com/here_there/status/1153301884184272896?s=19
Also notice how the recent Feb rns on the extension of ross and Blake, extending the asset life another 5 plus years, reducing decoms year on year, ( marathon reduced estimate 140m u believe just last yr) and gaining another 4.2m p2 reserves. Expect this on more existing and marathon assets as outlined in prospectus.
But earnings post tax and decom amounts into restricted cash is +$200milllion, plus $370 oddm+ in cash in their bank account.
Sooo decom costs could be covered by cash in a year or so....or $700m decom spread over 10 years is offset by $1.5billion + profit in that time...
Plus, if you hadn't noticed the acquisition strategy appears to be exponential meaning the cashflow from most recent acquisition makes prev decom a non issue.
$280mill not restricted. = approx £220mill/13mill odd shares= £17.1 per share
Rre making a ton of cash at $60 . Higher prices would be great bit not required for huge cash gen. Our speciallity is oil resources that make money even at low prices!
Price wise I look at sqz and rre, ignoring debt/recom etc. Sqz prob best at mo is approx £350mill mc and around 30k a yr production I believe. Approx 80mill 2p reserves. Obviously depends on what's reserves are bought to 2p from drills....but tou could make the assumption if liberator ( is that the right one?) does prove the reserves (130m 2p) and at least 20 to 30k production then you can make argument for valuations of 250 to 500mill market cap depending on method of valuing. If your going by profit of 2p reserves at $ in ground.
Easiest thing is to ignore prev share prices and just look at market cap. What's a realistic market cap for say 20k producer from next year? Ignoring debt etc I'd say looking at rre and sqz youd be looking at 200mill +. Dependong on reserves etc. So what does that equate to in share price ? No idea what new share issue is?