RE: "Transformation At Sterling Energy Represents An Opportunity For The Company To Re-Rate"15 Apr 2021 09:10
Happysparrow - morning. The new team built Tullow up from scratch, McDade as the COO early days. He is largely responsible for the success it became, remember it did get as high as the FTSE100. When he took over in 2017/18 as CEO it was too late in my opinion, damage done. He didn't help himself for sure but I see this the moment when he proves any naysayers wrong. He and McCloke have all the contacts you could want and the excitement is clear from the linkedin pages etc. SEY are extremely well capitalised , with a great capital structure and even their house broker seems to think Tullow's asset are a target, that would be a game-changer if so. Anyway, it's about taking a view and a position. Good article here: https://seekingalpha.com/article/4410283-transformation-sterling-energy-represents-opportunity
Looks like people are positioning for what could be the best or one of the best dividends in the oil space. Cash rapidly growing while production trends higher. Perfect ****tail here providing KRG behaves !
That’s the market - a lions den , not a kiddies playground
MMS make a market and work instructions. Till recently we have NOT seen them work so many sell orders and that’s clearly coming from some of the larger shareholder base. Words like ‘manipulation’ will get used before BTC was at all time highs yesterday but if entities want out they want out . I’ve been in copper and oil plays before where the underlying market is flying but someone is constantly offloading into the liquidity and it also causes downward pressure because they exceed the buy pressure . When done though the market invariably always corrects because of the value on offer. Patience required from all holders until this concludes
Any interest I wonder in Petra Diamonds Cullinan mine which continues to find some of the worlds best. Peel Hunt are calling for net debt to reduce there from <$300m to net cash by 2023. It’s only trading on a £145m valuation right now which I don’t see lasting for much longer. It’s on a 2022 ev/ebitda of 2.6x that drops to 1.5x in 2023. Incredible value if you believe that diamond prices firm, Petra does indeed deleverage at above pace. Anglo should make a move but I suspect just not big enough for them.
Rifteastafrica - with around $42/$43m to work this board has multiple options at hand. Go ungeared and buy something smaller out right or take on some debt and buy something much bigger. This board has unbelievable contacts and experience which it will use going forwards to really ignite the business and share price. Very happy indeed to be a holder here, the market is still get them cheap right now.