If I was pinned down, and had to point out ONE FACT about ESG, that makes me think ESG is a good investment, it would be this:
Based on the minimum amount of gas reserves ESG is about to certify (1,300PJ), the average of past transactions would value ESG at 3 TIMES the price. 300% of ESG's current price. And that is based solely on 1,300PJ of Project 2P.
Even if ESG does not get taken over. Even if they never sign another commercial agreement EVER. Even if they never certify a single joule more of gas - ESG is 1/3rd of past transactions.
That is why ESG will increase in price. They are already VERY cheap. They will continue to certify more gas beyond 1300PJ. And hence they will grow their intrinsic value.
Hardmano can go on holidays, knowing his company is incredibly cheap, on very modest assumptions.
The downside risk/upside reward is greatly skewed in the investors' favour.
Y
ESG Price at posting:
85.5¢ Sentiment: Buy Disclosure: Held
