3c of dividends for the year when they are trading at 10-11c is pretty attractive.
One more cent and its pretty much 4 cents in a 12 month period. CUEs MC nearly a match for ECH now. Paying divs like that must eventually inflate the share price of CUE...why would OGOG want that?
I purchased my first lot of ECH shares today ... the continued rise in CUE shows just how undervalued ECH is ...better list of projects + Capital base yet valued a couple million more than the smaller CUE?
ECH holds some A$41.5mill of CUE shares ... + A$38.6mill cash balance- of ECH A$87mill cap ...
as I've said before if they could exit CUE(with their INDO focus no thanks!!) that would be one nice war chest to say do a scrip deal and secure someone M&A like a GAS:ASX "State Gas"(Mktcap=A$16mill) in QLD with • 2630 km2 of combined southern Bowen Basin acreage• 534PJ^ of 2C Nat gas resource in place
then use the cash pile(along with additional capital raised) to leverage into BOWEN Basin developments GAS:ASX already has JV with Santos on two large permits with a local Gas pipeline running within landholding to access east coast Gas markets..that would be a great exploration project
This would be a great pathway to serious growth for ECH... but of course, OG Energy would have to be happy to see itself diluted downwards towards 50.1% ideally !!
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
I purchased my first lot of ECH shares today ... the continued rise in CUE shows just how undervalued ECH is ...better list of projects + Capital base yet valued a couple million more than the smaller CUE?
ECH holds some A$41.5mill of CUE shares ... + A$38.6mill cash balance- of ECH A$87mill cap ...
as I've said before if they could exit CUE(with their INDO focus no thanks!!) that would be one nice war chest to say do a scrip deal and secure someone M&A like a GAS:ASX "State Gas"(Mktcap=A$16mill) in QLD with • 2630 km2 of combined southern Bowen Basin acreage• 534PJ^ of 2C Nat gas resource in place
then use the cash pile(along with additional capital raised) to leverage into BOWEN Basin developments GAS:ASX already has JV with Santos on two large permits with a local Gas pipeline running within landholding to access east coast Gas markets..that would be a great exploration project
This would be a great pathway to serious growth for ECH... but of course, OG Energy would have to be happy to see itself diluted downwards towards 50.1% ideally !!
At long last investors have seen the value of Cue which has now rewarded its shareholders this year with big dividends and a doubling in sp .
the market has lagged with appreciating the value of ECH_and I would not be surprised if the sp does the same as CUE before the end of its current financial year -profit will be significantly higher .
At long last investors have seen the value of Cue which has now rewarded its shareholders this year with big dividends and a doubling in sp .
the market has lagged with appreciating the value of ECH_and I would not be surprised if the sp does the same as CUE before the end of its current financial year -profit will be significantly higher .
I seen value in CUE years ago 2020-21(and years prior) buying so much became my largest holding ... back when paying a dividend wasn't on the table ..it was clear to me and most holders CUE needed to return some capital to S/H yearly and shift Company image from micro-cap O&G play to "Energy Yield play"
I sadly sold out year and a half early so was gutted and happy for long-suffering S/Hs at the same time... esp as many of us had contacted Matt and put forward the case for the shift to being a energy yield stock to break the non interest... the company goes from just another micro-cap O&G stock to one of the limited ones playing a yield !!!
I'm 100% sure had CUE just HELD the cash the SP wouldn't have risen from flatlining 5-6c to 10c+ market sentiment was just so poor ...which is kind of interesting as it's just removing Capital from the company balance sheet ... which going forward will be needed for keeping production in place to increasing investment Mahato won't last forever (CUE Key FCF asset) but S/H love getting paid so value is added!
In ECH case with OG Energy backing how do we see some real market attention, a step change that CUE created with the change in tack...
#1-easy to FIX issue "Liquidity" ... ECH only has 15% free-float from TOP20 and I'm sure a good-percent of that 15% is held by long-suffering Kiwi retailers that see their shares as a LONG-term hold till SP is an attractive enough price to sell ...so on the ASX ECH is just not in the conversation of 99.99% Sophs/instos/pro's/brokers why would it be..next to nil liquidity... and if you have nil bigger end town investors talking about it then good luck seeing the buying pressure to drive much higher SP
.. my latest thought... WTF does OGOG want from the investment they are the cause of the ECH liquidity issue with 71.7% of the shares... more recent operations give me hope ECH wants to grow its asset base into AUS NAT gas ..great high pricing great profitable LNG infrastructure in place great place to invest..
So if ECH + OGOG goal was to see much higher market attention for the company going forward... make it an attractive place to invest larger amounts of capital!!
One option rough numbers ...ECH trades a good portion of its CUE shares to OGOG for a reduction in its holding in ECH... say from 1.6mill shares to 1.12mill so OGOG control goes from 71.7% to 50.1% which would be a reduction of 48mill ECH shares held @ 42c cost to ECH of 20.1mill in CUE shares @11.5c ... which roughly would see ECH holding in CUE reduce to 25% ...(or maybe OGOG won't do the deal unless controlling stake so give them the whole 50.1% of CUE they pay up 20.1mill in cash to ECH then OGOG goes to 50.1% in both ECH+CUE)
then take those 48mill ECH shares gifted back to the company and float them off @ 42c raising A$20.1mill in cash... or use the scrip to purchase another company that's at present very undervalued adding thousands more S/H adding liquidity and assets
If OGOG does go to the 50.1% in both ECH&CUE and we receive not only 48mill shares back but A$20mill+ in cash
then ECH could create MASSIVE WAR chest and gain major ASX attention as a predator... if 48mill floated off ......S/Hs(not OGOG) + sophs + pros + insto's etc one could see ECH command A$78mill in Cash balance and if this was the case I'm sure the SP wouldn't be 39c but much higher..
Of course ECH would no longer be controlling stakeholder in CUE or maybe not a holder at all...but why would that be much of an issue as it seems T/O of CUE is never going happen why run twin companies with similar boards such a waste of capital that could be invested while O&G sector is so very undervalued.
ECH could buyout via scrip TEG for peanuts and then go for GAS add more Cash+projects on the cheap... I don't think it would be that hard of sale to their suffering S/Hs
Disc-Holding GAS,ECH
Last edited by JBmurc; Today at 03:21 PM.
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
Originally Posted by mike2020
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