Now I get itI've been watching ShaMaran for a couple of months now, and I simply did not get it.
Here is a company spewing out tons of cash, more than doubling reserves in recent months, Lundin Group, debt that is in line and rapidly being repaid, and growing production. Looked soooo good.
Sure, I got the risks. Minority position (16%), Kurdistan, danger of cashflow interruption, but the low valuation (PE of 1.4!)... Very tempted to buy but decided to wait and see.
And then, I got it. Turkey and Kurdistan interrupting the flow of oil due to a dispute with Iraq, in March.
I hope this gets sorted out quickly. But this will leave a cloud over the company, even if the oil stars to flow again. Unfortunate.