I am truly sorry I spoilt your lunch. A good peaceful Sunday lunch is what we all wish for.
I look for the positive evidence as much as most but refrain from exuberance
The $1.6bn MOU is a great step forward and the first strategic thrust by DC since STO bought in. It is truly great news and a provocative move.
We will see if STO responds in any way.
That one can extrapolate that MOU to the whole resource is naive. Any number of desktop spreadsheet scenarios can be modelled.
Not everyone was fortunate enough to buy in at 26cps and for every seller there is a buyer so those LT holders who did buy at over $1 will just have to be patient,if they can maintain the faith in the ability of the management to monetise the resource.
If you have held ESG since the early days I would guess that you are highly immune to any negativity and are happy with the company's performance.
The "Dreaming" - we can all dream of the DC Presentation Slide 5 "Comparison of Recent Market Transactions" Mean $2.79/GJ 2P of July 2009 but will it happen to ESG ? I sure hope so !
Yes - ESG is well over 20cps and I appreciate that Yes - STO did know what they were doing in controlling ESG using equity and JV interest, as to date they seem to be comfortable that they still have enough control No - I have no idea what STO may do , pure speculation on my part that they may use their gas to backup their LNG projects or for swaps in the domgas market Yes - a can-do management can do horizontal drilling very well exploiting the fracture characteristics of the coal. We want them to become more can-do on the marketing side and provoke STO more strategically. If they can get more $1.6Bn MOUs or convert the existing ones with Macquarie generation and Babcock and Brown,which we have heard nothing about recently, then that would be Can-do.
We all have our moments of doubt but consider this :
If we had invested $1000 in ESG in Feb 2001 at 20cps for 5000 shares, and then forgotten about it , the bottom drawer strategy, then as of 14/5/10 our investment would be worth $4025 a CAGR of about 16%
- so ESG has been a good LT investment as you rightly maintain :)
ESG Price at posting:
75.0¢ Sentiment: Hold Disclosure: Held
