Post by
pwig01 on Mar 23, 2023 11:26am
Comment from 5i
It can be very hard for a $45M company to attract attention, especially when the sector has rolled over a bit. It is also Mississipi-based so Canadian investors tend to ignore it a bit. Revenue quadrupled in the last quarter as new production was added, so it does not appear to be a growth issue. Net earnings increased 54%. It says it is on track to see 25,000 b/d. The balance sheet is decent and it is a cheap stock. Two shareholders, Venture Equity and Svetoslav Bojilov, have been accumulating shares, and together now own 21%. This is a good show of support, but also limits the available share float even further (still, it trades quite heavily, in London as well). Insiders own 5%. We are intrigued here. We can't nail down specific reasons for the weakness other than those noted above. Recent wells have a payback of less than one year.