My story is not really disimilar, but my investing sweet spot, developed over the years, is trying to find approx $20mil MC companies that have an asset that can get them to $200mil MC.
Usually they have a partially exposed asset and the market has missed its potential.
In that regard ADE has been a little disappointing I thought we would be further along price wise given the success to date and the M&A activity that is happening.
Although their are precedents for this sort of situation, the most recent being AVB last year the result they took off on was actually just a rehash of prior releases infact that companys sp fell for about 9 months on astounding results before the market woke up one day then everyone wanted some.
Specifically for ADE, I liked the small but growing production base, so they were not going to disappear on a single failure, and the success of the shale seemed pretty certain to me given there was so much prior knowledge of the geology lying around and their is a lot of spare capacity for production lying around as well.
Lucky for me their were a whole load of risks with the geology that have gone our way that I had not even known to factor in, TME has been able to educate me about them over the last couple of months, so like everything , live and learn.
Unusually it has ticked every box for me.
Competent management, not bent on lining their pockets at SH expense, certainly not unusual in this space.
Potential T1 asset to discover.
A bit of production to pay the bills
And at the time they were crazy cheap bought a lot at 6c-7c range last year, (about 17mil MC) recent top ups have pushed my average buy price out to 8c but not hurting with that as yet. :)
ADE Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
