TSXV:PEH.H - Post by User
Post by
cupricityon Dec 18, 2014 10:19am
143 Views
Post# 23243980
what the market thinks
what the market thinksThat the oil rig is just a farce that allowed CNOOC to borrow money from state run shadow banks so they could line the pockets of the contractors.
Why I think this is wrong- why would they have PEH involved and then pay them?
What I think is going on. Majors (Exxon etc) tried to find gas and didn't. China like any other country finds it very important to have some domestic energy. PEH found the gas when the others couldn't. They found it because they didn't give up.
If it is a ponzi scheme it will soon unwind. If it isn't than we will be able to buy all the shares within a few years with the cash generated from the gas. Think if we has a float of 10 million shares and were earning 100 million a year from well expansion. 100 dollar shares. Not saying that is likely but currently we can buy back all of our shares at todays price with 1 years profits (but first we will pay back loan which we can do in 3 years and expand production). But if we took 10 percent of our profits to buy back shares in three years we would have 80 million in the float.
Trust is hard. Risk and Reward are measured together. My gut says we are good to go.