OTCPK:EDEYF - Post by User
Comment by
jamesiebabieon Jan 10, 2014 2:01pm
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Post# 22078995
RE:RE:RE:strngth on the buy side...
RE:RE:RE:strngth on the buy side...From the sma e shareholder who is European based.
been doing a bit of research on EDG and adding some shares over the last week or so.
I note that Henderson previously subscribed at 16pps, and have added recently in the 6p placing, however I don't see any change to their holding? Are they below 3% and therefore do not have a notifiable interest?
Looking at the sp, it does seem to be being held back a bit possibly by the last placing with plenty of stock available at 8p+
Recent announcement of two of the 4 wells drilled not previously having any reserves allocated should be good for a further update to the reserves.
Looking at the NPV10 valuation from the last reserves update, it stood at CAN$87.3mln which equates to c. 49mln GBP, or 3.68x's current market cap.
With further increases in the NPV10 expected, seems like a no brainer with very little downside. Excellent reporting and regular updates, letter to shareholders, low admin costs and returns of 3.5x's cost of capital being amongst the highest in the industry. I'll be adding more when the opportunity arises.
GL all
ps one negative I see is the continued fund raising and shareholder dilutions, but hopefully with the comments regarding being cash flow +ve in 2014 there shouldn't be any need for operational fund raising, only for acquisitions, and with the current track record that should not be dilutive, quite the opposite.
aimvho