Post by
Dave4444 on Oct 28, 2020 3:11pm
Why is everyone asking why the price is down, and nobody is
asking, how on earth it ever got to 55 cents a share in the first place? Does no one ever look at market capital of a company anymore and ask if it makes sense? With 880 million shares outstanding, at even just 50 cents a share that is a market cap of $440 million!!! For a 10% interest in a discovery, that means the entire discovery has to be worth $4.4 BILLION to justify the share price and that is $4.4 billion for an undeveloped discovery. SO the news is they drilled 73 meters of gas and liquids in one of the most difficult places on the planet to develop. Craap, TXP recently drilling 240 meters of liquid rich gas in Trinidad on land in one of the easiest places on the planet to develop and it owns 100% of the discovery plus other discoveries and has a market cap of just $305 million.
So when you ask why the price went down, maybe the reason is it was stupidly high to start with and even at today's lower price it is crazy expensive for what it has found and where it has found it. But hey I am just a guy who did not lose any money today because I did this analysis months ago.
Comment by
tadjames1 on Oct 28, 2020 5:18pm
Dave did you do your homework ? The company has 1.5 billion shares
Comment by
Schreibzey on Oct 28, 2020 6:13pm
There also aren't figures for the number of equivalent barrels listed yet either. Let's also address ODs point, how does the gas get to market 175km away in rough seas? Total wouldn't be spending all of this money if they don't think it's feasible, but for my benefit, how are they going to get this gas to market?
Comment by
tadjames1 on Oct 28, 2020 8:53pm
There's a pipeline nearby