"yes correct, however, if you take-up your entilements, you...

First 60 Last

Share
Profile

Follow
robynjackson

263 Posts.

16

07/04/20

20:24

Post #: 43936768
Share

Originally posted by Value_Hunter: ↑

Teddy,

yes correct, however, if you take-up your entilements, you don't get diluted.

circa 5 yrs ago - the OP crapped-out.....it twas obvious that ORG and STO would require significant $$$ to repair bal sheets, given they had just spent billions building LNG plants.......

OP then rebounded .....ORG went from 4 to 9 ....

OSH has the gas sitting there (elk/antle etc), and a brownfields expansion is cheaper / more economic thatn a greenfields.....

the Canada asset is simply a call option over OP ....

as you point out - "new" investors set their "rate of return" when companies require significant new capital (in stressed situations).

there are a few of these in the LPT sector ...............

in the GFC - Stockland / gpt required $$$$$........it was a v good investment opportunity post those rasings .....

while we are currently seing "demand destruction" via the stay at home ........eventually, they will find a vaccine / create some drugs to mitigate ......and the punters will be flying in planes / driving their cars .......

so - 12-18 months of fear and loathing......followed by normalisation of commodity .....followed by OSH making excellent $ ......followed by growth option being worth something, etc etc

as you also point out - there will be quite a few that don't make it ......indebted US shale being the obvious example...

rgds
V_H

Expand

"yes correct, however, if you take-up your entilements, you don't get diluted."

Yes, you do get diluted as the insitutional placment amounts are much bigger than the ordinary shareholder amounts and the ratio is only 1 for 8.

OSH Price at posting: $2.73 Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

Reply