NZOG (and its ilk) should trade at big discounts to any valuation given management diabolical track record and the huge fees, salaries, bonuses, travel, entertainment and costs they extract from the company for said SAD performances.
Printable View
NZOG (and its ilk) should trade at big discounts to any valuation given management diabolical track record and the huge fees, salaries, bonuses, travel, entertainment and costs they extract from the company for said SAD performances.
I think you are dreaming if you think nzo has the common sense to buy cheap reserves via acquisition. They have had the opportunity since issuing shares at $1.50 roughly eight years ago when they they had circa 350mill in the bank. Since then they had another huge windfall from issuing PRC shares.
What has happened since.
loss making acquisitions of PPP shares so that Radford could raise cash. Also did the exact opposite of diversification so that when the tui double down failed $ flooded out
Purchase of some dodgy middle east dirt that had to be written off when NZO noticed that war happens in the middle east. was a great holiday for the execs though who needed to sign a few a papers between greek island cruises.
purchase of kiasarian in very dodgy indonesia where there is no gaurantee of earning anything. produces hundreds of barrels. game changer!!
badly managed a mine so badly that it blew up as they did not realise that there was a gas risk involved in mining - huge investment $ wasted
many unprofitable drills
couple of dividends but they had to be halted to prolong the life of the gravy train for the pigs in the trough
.............
a company that is undervalued can become even more undervalued and sadly this is the worst run NZ listed company ever as they have wasted roughly half a billion $ (others have lost more but that was due to fraud, not management policies) and killed many innocent people through gross (should have been criminal) negligence.
The only way to sensibly invest in NOG is to open a CFD short.
Market is placing a huge discount on the management and governance of this company.
IMO, the writing was on the wall when its CEO/MD Andrew Knight did a Pontius Pilate during the debate on taking care of the dead miners' families. He abdicated the company's ethical, moral and community responsibilities and leadership by getting shareholders to vote down the compensation proposal. A company with no moral bearing at its helm has no future.
Balance's selected stocks in competition
NZO PEB SNK RAK MOA
Yet he states above that the company has no future. Go figure.
Yes I am pleased the realization has finally landed that Peak Oil is a real crock of an idea. I posted on this a number of years ago. Its major deficiency is that it overlooked the role of the market in determining the price of oil and also assumed that the major determinant lay on the supply side.
Well,fracking has certainly boosted supply,but otherwise Im not sure the supply has increased that much.
Alot is being sold due to economic circumstances--even the Saudies...but for sure ..their are variables to any theory.
As unbelievable as it would have seemed a year ago that oil would be under $30--It could be just as unbelievable in next year how much it has bounced. (Its still pretty hard stuff to find)
(not a recommendation to buy this share though)