am i missing something...?, page-10

I am a long term holder of HGO and gradually increasing my holding.

I would not worry too much about the current market price of many stocks unless you are a short term holder. The market is currently dysfunctional and there is a lot of very good value stocks for those that are patient. Some investors are going to make a fortune over the next 12 months.

The issue with HGO in the current environment is lack of cashflow. It has a good project in Kanmantoo but without cash flow it must be put on hold in the current environment. The priority must be to conserve cash and see out the next 90 to 180 days.

HGO is very small and slips under the radar of most investors. ESG will eventually get taken out but it is going to take a price over $2. When that happens outside investors may suddenly wake up but it will be too late for them.

Lets consider AJLucas. It has just sold its Gloucester basin CSG holding to AGL and is offloading its stake in Sydney Gas (takeover by AGL). In a matter of days it has raked in $300m in cash which is more than its current market cap. It has raked in the cash from selling assets that earned no revenue and required ongoing funding and has kept its core drilling and pipeline business that will earn 44c per share in 2009. How has the market reacted to this news - its share price has risen by a paltry 10% to $4.25. The point I am making here is the market is dysfunctional at the moment and we need to have some patience and await its return to normality.