If DB announces the $14,000,00010 Mar 2023 16:52
next week, then the cash in hand is heading from a third of the market cap towards half the market cap.
Today's share price is quite ludicrous when you take into account the potential increased oil flows, gas utilisation and revenues, lower cost etc.
Could an AIM oiler be in a better position?
Profitable, substantial monthly revenue stream, debt free, paying the first dividend with the likelihood of more to come, share buy backs, the positives are endless and I think fair play to David Bramhill for achieving the present status of the company.
The share price leaves a lot to be desired, that much is for sure, but if the company continues on the present course, it does have to re-rate. It's all very well com-plaining about the present valuation but I see little the company can do to make a big difference.
The oil sector is in a dire state in terms of investment with just about everyone sticking the knife in, although like all sectors, there will he a turn around. A few black outs, everyone's EV's costing too much to charge and adding to everyone's journeys, people freezing to death in their homes, afraid to turn their heating in due to the cost, we as a country are heading into a deep cavern where the only way out is to go back to the entrance.
My belief is oil will soon be beloved again and governments worldwide will back themselves into a corner, finally accepting there is no climate crisis, there is chance of net zero, that wind and solar will not save us.
Union Jack will be in an exceptionally strong position to take advantage of any turnaround, their cash position could certainly offer up some cheap acquisition opportunities and shareholders don't have the worry of a placing, AIM investors biggest risk.
This year should see a much higher share price and allow long term shareholders to eventually see their profit.