RE: What amazes me the most...Care to explain?
"People just stop investing"? Not sure what that means...
Are you referring to the meltdown with Bridge and Paramax?...I don't think people have stopped investing; people have simply sold and moved on to companies they can trust, institutional clients included, and chances are many won't come back even if the prospects for this company improve...it's all about trust.
IMO the news release the other day was mixed, but primarily negative. Again, they reported a very good intercept, but gave investors absolutely nothing to cling to to give it a sense of hope...I agree fracing will help...and possbily even to a substantial level as many hope...(I hope so for those that continue to hold.) Personally, I took a big haircut on most on my shares and have since put the money elsewhere.
There are a couple of things I've learned over my 20+ years investing in junior markets. First, management teams have to manage investor expectations...You get the shock like we saw the other day and people are going to make a mass exit as we all witnessed first hand. Management $crewed the pooch on this one...To see both Paramax and Bridge melt down by about 40-50% I think anyone would be hard pressed to see the success in the news. They could have done a far better job to mitigate damage of how this information was presented.
1.25 million cubic feet/day on a 1/8 choke!? ...and from 4 zones! Wow...Did that ever miss the mark!
Additionally, the duster means that they don't quite have a handle on the geology like they thought, as such the find is probably smaller than anticipated...
The second point I wanted to make is that.... perception=reality in the market.
If the market doesn't like what they're dealt it doesn't matter how much the companies worth they're going to be trading at a big discount...
Unfortunately, this whole thing is riding on Ed Davies, and from what I can see and thus far, his track record is looking very questionable at best....Durango and its issues are still fresh in the minds of investors...
The market speaks for itself...well beyond our comments.
T2