Member Info for SQ320

Looks like we are on the way to form a double bottom at 7p?

Our biggest concern is getting paid and she's talking about attracting investors, if we get stiffed it won't be the greatest ad for the industry.

Good news (fwiw) is that the sums and parties involved are of a scale that seems to be getting press coverage and not only is it the BoD at SAVE who are facing questions but also gov.ng

The securing of better finance terms would be an interesting development. Would it be possible to infer that whoever is willing to improve those terms likely has had a look at the company's debtor position and the trends for this in order to and is comfortable with what they see?

This seems to have been tried in a number of different places, for a while now and all of them claim positive results. What's surprising is that why they don't give it to everyone. After all, if the alternative is death there's no harm trying.

Pharos issued what seemed to be a reassuring update yesterday and even did as Paul told them to do regarding the dividend! Still hasn't stopped the decline. I'm resigned to hunkering down.

happysparrow - if there is material news, sure they have to report it, but providing reassurance for the sake of it, is in their gift.

The company have no legal requirement to reassure shareholders.

Could it be possible that the 7E bondholders who are selling are having their stock gratefully bought up by people who the company want to favour and as a result don't see anything wrong with the current share price?

If that's their game we could well see the price go down a few more pence yet. Because the bondholder likely has not finished.

That would go against the mood music the Nigerian government had been playing before the oil price crash, i.e. they wanted to encourage foreign investment in the energy sector.

Surely the company is only obliged to report, if there has been a material change?

In the last month, 40m shares have been traded. Which means 20m buys and 20m sells. There are about 1 billion shares in issue. Bear in mind that some of the buys/sells could have been the same people trading the same shares!

I'd put down the SP fall to the fact that the relatively small number of buyers are not interested in buying unless they get a good price and whoever is selling is willing to take whatever they are offered.

And overall I'd be surprised if this has been IIs selling out.

The industrial zone where the Morrocan side of the business expects to sell its gas has businesses that rely on a healthy economy to sell its products e.g. cars. No demand for cars, less demand from SDX's customers and our bottom line is hit.

The investment case for SDX is that they have those amazing margins because they have both the upstream and downstream sides of the business. That can be a pain when you don't have many other customers to sell to.

Three months to go until the next set of results and by that time the worst of the virus should be over.

Actually are supplied demand constrained? My understanding was that P.W. had bigged up the sales potential and one of the reasons for his going was that the company was not getting new Morrocan customers at the pace that they had predicted.

It's a presentation, the question is to whom? It could be an investor group, it could be to important people in Niger(ia) or even a farmout partner.

Do firms make presentations to farm out partners??

Thanks, helps explain the strange choice of a Japanese martial art, whereas a Chinese one would also have kept CNPC happy. Double happiness as it were.

I poster I respect (tournesol) has posted this on the PHAR board on advfn:

"I tend to think that investors are starting to regard oil companies like they did tobacco a few years ago.

Many investors shunned tobacco on ethical grounds. And tobacco co valuations fell substantially as a result. But they kept churning out profits and paying dividends. They still do.

I wonder if we just need to wait for the monetisation stage of the life cycle. If Pharos and others can sustain solid dividends then maybe we need to focus on income rather than capital."

Unlike other companies, SAVP is cash generative and likely to become more so. I think the case for dividends is becoming stronger and if tournesol is right, more so as time goes on.

I know some will reply by saying that they would prefer share buybacks. My concern with buybacks is that while it may take out investors who are currently selling, it may encourage others to do so as well. In contrast a good dividend yield will appear on stock screening software and help advertise SAVP to income investors.

I should add that i've never been an income investor, but if that's the way to get a good return out of SAVP, so be it.

Agadem, I have the following question. The industrial customers that the company is hoping to acquire for gas sales, will they have to undertake any conversion work in their facilities to transition from diesel/fuel oil and if so, how long will this likely take and will they expect Savannah to pay any of the associated conversion costs?

When the company refers to making further acquistions, would this be linked in any way to the stranded gas around the Accugas network?

Yes, it was predictable. It'll be a fair wait for any recovery.

I'll let you down gently. This is 100% going down at 8am.

It's not the sort of result that people will buy off the back of, but it is one that will lead some to sell.