GREY:SMBZF - Post by User
Comment by
nemo3on Jun 08, 2015 12:20pm
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Post# 23807364
RE:No more 3 cents or 5 cents. Will be huge soon
RE:No more 3 cents or 5 cents. Will be huge soonI don't think Indian investors will be big buyers in this stock. It is not listed on the Mombai exchange.
If one remembers back to the initial PSC in Kenya by Africa Oil and then SMB, Simba's share price did appreciate a bit on speculation when Africa Oil was going up and drilling. Those days are gone now - the initial euphoria and speculation of being in Kenya and finding oil there.
And though this is excellent news, some investors just might not like that Essel Group is the one coming in as opposed to someone like Exxon Mobile or another well known oil company. Essel group has no experience in oil so that might be perceived by some as a negative point.
We know that Essel group will be funding the exploration costs including drilling. We don't yet know if Essel is also giving SMB some cash or whether SMB must do a private placement in the near future. This unknown also might be helping keep the price down too. And Simba also has close to 300 million shares outstanding plus 61 million warrants - big difference on a play like this if the outstanding shares were sitting at 30 million.