Well done on LNC. I'm understandably a little upset i didn't get onto that one a little earlier, after umming and ahhing for an eternity before it was too late. It's always easy in hindsight, however I initially discounted syngas and UCG because I was too unfamiliar with the technology and considered its stage of development to be too infantile in order to deem it a worthy investment. I've been proven wrong.
I've had a significant holding in both QGC and MPO for some time (over 5 yrs for QGC, and first started trading MPO heads and ops about three yrs back), and have been relatively happy with the performance of both stocks over time, however, can't help but notice that CSG stocks in general, especially QGC, have started to sag recently.
I guess it's easy to say that much of the recent run enjoyed by Aussie CBM stocks had been attributible to media interest and foreign investment. Although, I think there was a little 'hot air' built into the prices we saw about 6-12months ago, however in time, I do believe MPO and other CSM stocks have the ability to justify their price targets, especially MPO on 2P reserves and Canadian news.
I'm now a little concerned about the possiblity of UCG technology superceding that of CBM. I understand that the two technologies may be able to function and operate simultaneously, but it appears that many investors/traders have been selling down CSG and buying UCG of late, especially today. I guess in part, recent performance could also be attributed to gas/oil price declines.
I am further concerned by issues raised regarding salinisation and the fact that CSG extraction methods may cause further degradation to the environment and land than had been first anticipated or overlooked due to the excitment regarding certification of enormous gas reserves. I'm just trying to comprehend or develop some kind of capex figure required to offest this degradation in the future.
Just wondering if anyone here harbours similar concerns regarding CSM, as I'm trying to paint a whollistic picture here. I'm still very positive re: the future of CSM in general, and am espcially excited about MPO's Canadaian prospects. Just trying to create some valid discussion here, and interest in peoples thoughts
MPO Price at posting:
$1.20 Sentiment: Hold Disclosure: Held
