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if t cross had capital to do it, he would have done it a long time ago. He does not want to take anyones capital since he is a control freak. It is easier for him to deal or does not deal at all (just talk once a years at AGMs) wiht a lot of small investors.
NoQuestionMarks:
Logically speaking, you are right about commodity prices for M&As BUT IN REALITY M&A models and deals are done based on Long-term price assumptons since everyone in the industry understands the nature of a cyclical industry and nobody would be assuming in the investment models that such high prices will stay for a long time. People always focus on Long-term picture. That's why we try to do as many buyouts as possible during down cycle. Industry veterans (and I do not think I am the one) understand it.
I have been in the Investment banking (Oil & Gas and Mining M&A team) since 2008 and It has always been the case whether oil & gas prices at the bottoms or tops. The only difference is that it is a bit easier to find deals when there is a down cycle and vice versa.
All in All, PMG is earning well now. Gas price is helping as well as German regulator by postponing Nord Stream 2 approval until 2 Half 2022 (at least). It is all in the news today. So, gas price has no reason to go down for now.
Gas price keeps going up... As I mentioned earlier, I just cannot see a reason (at least for now) why it should decrease. I thought it would stabilise at an OK level but looks like it is not enought for it...
PMG will definitely gain from it
There are plenty of ways to do it, including bank financing, PE debt funds, PE Equity, etc. I would not see it as a problem. Maybe it is time for t cross to start finally working rather than just cashing salaries
Looking at current market trends and amount of capital looking for deals, I would not be surprised if Parkmead becomes a buyout target. Another possible solution is t cross to do an MBO. Time will tell. MBO is more likely in my humble opinon. He will secure funding easily if he wants to do it.
If anyone goes to AGM, you can ask this quesiton.
Hi Adw198 - Generally speaking yes, it is not great but PMG level it is quite OK. Vermillion Energy has a big development program in Netherlands and I know that Scott Platform partners are interested to develop GPA to decrease their own OPEX as well as extend life of the platform. My bet is on these two events rather than on t cross.
Good point. AS we previously discussed, effect from HIGH gas prices have NOT been included in PMG financials yet since the most recent earnings were as of 30 June 2021. BUT DUTCH gas price jumped severely in Q3 & Q4 2021 ONLY. We should see this in March earnings