RE: Company valuation28 Apr 2022 10:56
Been a reader on here and investor for several years (Pre LOG filth) but never stepped in as the techs of gas recovery is not my area of expertise. Markets are, hence my 2p's worth.
1. MM's do manipulate prices. It's not fraudulent to offer at a low price but it is if they agree to do so in unison. Like so many City practices, its riddled with fraud and AIM is thin enough to enable this.
2. Valuation is a relatively simple process, if ever given accurate enough reserves and flow rates. The analysts projections should be reliable enough to lean against, so Peel Hunt etc should be regarded as a straight edge.
3. RNS etc. Many, many companies issue (very) false and misleading info on their releases, typically to ramp the SP before a cash call or simply to allow directors and major shareholders to sell at the top price. That is also illegal but please show me the last time a false statement was ever taken to task by the authorities - they have no teeth and no balls, a pathetic group -picture A Bailey in a tutu and makeup (or maybe don't!). The BOD need to do way better in their info flow. The MM's ability to play games can be taken away if their is high volume in trades, so very often a result of positive editorial and the SP getting to a level where II's can take a stake.
I'm sure most are aware that the SP doesn't often reflect valuation, its about future earnings - i.e. multiples of future earnings. Hence, with gas prices forecast to be materially high for the next 5 years (and beyond is my bet), IOG should be priced much higher. If you can buy and hold, it will get there. Probs 2 years from now this will have a £1 in the number - reserves dependent etc of course. Hope that helps.