PS. And then there are many happy institutions who took the opportunity when Zeta was accumulating this hugely undervalued stock (according to old timers) to 'gift' the shares to them at over 80c.
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I sense a lot of accumulated baggage - and for sure, if NZO would have played their cards better than they would not be where they currently are.
However - it looks at current prices well undervalued (no matter, whether I look at NTA or make a PE based assessment), it feels that their resource estimates are still quite conservative ... and they have sufficient cash to get even through a prolonged low oil price environment (and as well large gas reserves as buffer against oil price swings).
Obviously - their board / management might not be the best it could be (but how many companies have all stars aligned) - and I think this is one of the reasons for the current SP.
Personally I am sure that oil will move up again (that's a when, not an if) - and when they reinstate their dividends, than the current SP will look really cheap.
Discl: hold some, but DYOR - this is obviously a somewhat speculative stock
If you think oil price is going to recover, buy oil. No need to lug along the baggage of NZOG's poor investment and mis-mangement track record.
They could have bought most of CUE energy now for what they paid for their 48.11%. Todds saw the bright eye boys from NZO and their check book - that's for sure! :D
Likewise, the 1 for 5 share cancellation at 75c wasn't a brilliant move for remaining shareholders.
Conclusion : Cash in their hand + track record = huge investment risk.
Interesting development.
How will our highly relative to their workload remunerated management team respond, to the beginning of the end of the Fossil fueled age.
Looks like a switch maybe to more gas exploration & concentrating on buying into gas related assets, easing out of oil???
Will they????
Btw:
Personally Not at all convinced yet global warming is caused by man. but that is another issue & will not enter into any debate on this forum.
Cheers all
No need to wonder, tim23.
NZOG happens to have some 'ostrich heads in the sand' shareholders with a mean streak so it has been a pleasure on my part to show some of them that is not a good investment strategy.
So far, 100% correct on this company (and Pike River Coal).
Try beating that track record and ignore at your peril.
Yes it is just an opinion, but is it so far fetched?
Or is it mirroring what is increasingly observable?
Equities barfed nearly four percent just last week, credit is crumbling (nobody wants to lend), junk bonds are tanking (as defaults loom), currencies all around the world are crashing, hedge funds can’t give investors their money back, “liquidity” is AWOL (no buyers for janky securities), commodities are in free fall, oil is going so deep into the sub-basement of value that the industry may never recover, international trade is evaporating, the president is doing everything possible in Syria to start World War Three, and the monster called globalism is lying in its coffin with a stake pointed over its heart.