12 reasons why ive invested in ajq, page-39

I was watching a show on Bloomberg the other day. It was a panel of industry experts talking about the world's future energy needs (the next 20 years).

The consensus was there would be a very big shift to gas and Asia needs plenty of it. On the flip side, nuclear energy looks dead as it's simply too unpopular.

In addition, many stock analysts are predicting O&G stocks will be a big mover in 2014 when some appetite for risk comes back into the market. O&G small cap resource stocks have taken a battering in recent years and at some stage will rebound (2014?).

Armour and other quality small cap stocks like CTP (which I also hold) are very well placed to capitalise IMO. They have tied up huge acreage in some very prospective O&G basins. They're also not a one area play like some others.

I'd be very surprised if the multinational majors are not paying close attention. There is already talk that US oilers are now looking at OZ as the next big thing. It's only a matter of time before they move in. To do so, they will have to make deals with the junior explorers. Again IMO.

These themes can take a while to play out and you just have to go with your investment intuition and forget about short term volatility.

That's why I'm betting long term on Armour. Good management and potentially a world class resource on the doorstep of Asia. All they need is the capital to unlock it. Hopefully, they can attract a decent JV but if it's a capital raise so be it.