KEVIN GRAHAM - FANTASTIC PREDICTIONS From 2011, Kevin says:
For as long as I’ve held this stock (just over four years now), the naysayers have always tossed out political risk as the biggest stumbling block for the Company. The geology, well, everybody sees the potential there. Exploration risk is the one thing common around the world. This region is recognized universally as one of the most highly prospective on the planet. Results so far have been very encouraging. The Company has de-risked three of its properties through the joint ventures with major mining companies.
It’s always been the political risk that has held many sitting on the sidelines. Fully funded, newly licensed, regency governments as partners, multiple rigs turning, the State of Qatar holding a 9.99% stake in the Company, and a well placed and highly respected government official on its Board of Advisors, Southern Arc is ready to rock and roll. This collection of recent developments serves to neutralize whatever risk premium was formerly assigned to operating in Indonesia… uniquely for Southern Arc, that is.
This achievement effectively renders the political risk for Southern Arc at a level lower than that of operating even in North America. Governments… multiple governments, all connected by close interpersonal relationships, have a stake in Southern Arc’s success. Match that if you can.
What’s it worth in share dilution to all but eliminate political risk here? If share price is poised to rise as a direct result of this move, who cares about dilution? At the end of the story, price per share is your metric, not the number of shares. The massive reduction in political risk, in one fell swoop, I think, is the real story of the week. For those looking to make a quick flip for a buck on Southern Arc, this may mean little or nothing. For those looking to enjoy a steady rise in share price, as the case for this company is established, promoted, and supported by key relationships, this week’s news can not be topped.
Well, drilling results might do the trick, but that’s a story for another day.