Failure time and time again20 Oct 2023 03:30
It’s simple, market sentiment has an enormous impact on sp and ultimately whether a company can raise capital, pay bills, get deals done and survive. They’re all connected.
Sentiment is dependent upon confidence in management. Put really simply, do they do what they say they’ll do? Is there consistency? Can you trust what they say and tell you, because if not, then there’s nothing at all other than someone telling you a story with no basis at all.
The fact is there’s been such a massive, blatant and repeated history of utter bs from GL and GD, inconsistent messages and timelines over short periods of time, that the only sane conclusion is they simply lie. They’re unable to tell the truth. There’s no way for example things have suddenly got so much worse since 21 September, but they clearly have. You have to conclude you just can’t trust a word they say. Ever extending timelines will lead to this company failing, of that I’m sure. The project might get concluded, but not by Sound and not to benefit its shareholders, that’s for sure.
Longer timelines = more dilution = much lower share price (it’s a viscous cycle now as sp / mcap is so low now, any raise via equity dilution as it would mean vast watering down of existing SHs)
The content of the presentation published last night combined with the underhand chicken shot way they did it (not facing up to its investors) is the last straw I feel. There’s only so many times people are willing to be mugged off, as it’s deeply personal I’d think.
GL = JP. They’re no different. Unable to be consistent, tell the truth, give investors any confidence at all. It’s always tomorrow, next month or next year. The FID has been talked about for 4-5yrs now, and yet again massive delays admitted last night with no certainty.
It’s not all bad news. GL and co will continue to get paid for the moment, they’ll continue to not invest a penny nor have any real skin in the game here, huge red flags for any investor.
Share holder value and company are not the same thing. It’s clear to me GL has prioritised all other internal and external stakeholders over equity SHs here. No wonder the CB is selling, they’ve realised it too.
My expectation is GL to resign in the next 4 months, and Sou to cease trading on grounds of insolvency. There’s no money in 2.5 months by their own admission and a market that’s clearly unwilling to be continually mugged off again and again by this lot. Sorry to say it but Sou is finished.
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