A buy back won't really accomplish anything. There are 5bn shares on issue, $1m spent would reduce the SOI by ~75m. If the fair price of stock is 1.2c it would change the price to 1.218c.
What it might do it's put a floor under the SP for a few weeks if they bought a few million units a day.
For this stock to reverse its trend it needs direction spelled out.
Someone posted an interesting TA chart, not that long ago showing a falling pennant on falling volume. Usually this is a bullish sign, but from a FA point of view the falling volume is because there is no interest and no news. Investors aren't letting the stock available dry up, they've just got bored and left.
The recent investor presentation was utter crap. It contained nothing but word salad and no actual information, no wonder the market rejected it.
David Prentice needs to articulate the plan regarding wells, what is the plan to drill. Yes plans change because of problems or good fortune but what are your goals? How are you going compared to those goals?
In the last quarterly DP says "significant activity across three of its pillars". Operated Drilling, Producing Property Acquisitions and Land and Leasing. Then goes on to completely exclude Producing Property Acquisitions from the report (because of zero activity?) and Land and Leasing gets a tiny paragraph with total progress being a bit of evaluation.
I'll have to look up significant in the dictionary because it doesn't seem to mean what I think it means.
Now, it's okay to not have much activity, not everything will happen at once, but you don't need to tell porkies in the reports. Markets notice this.
Sure, the quarterly is a backward looking document and you don't expect much onward vision. That's what investor presentations are for. So let's look at it and the content on the three pillars.
2 wells planned for the next three months, then four a year from 2023 each year. Okay good. Not sure you're on track for 2 more this year, but at least it's a goal.
The other pillars? Zero content.
The company has no direction it seems, we are hoping it's working on those two other pillars. We hope there is land acquisition being worked on, proving up resources occurring, land revaluation planned, land sales being negotiated.
But who would know?
It's a fine line between giving away your hand and keeping shareholders informed. But with no trust in the company by the market, shareholders are getting smashed. And with directors having no skin in the game, it looks really bad.
(20min delay)