Europe is scary. Our Government is stupid and incapable of thinking through issues before making announcements but does this really affect the long term value of ESG other than at the margin?
As I have frequently read in this forum, each day that goes by ESG is worth more - better flow, higher reserves A WORLD CLASS RESOURCE.
Do you really think that has changed?
Sure, in the short term a takeover looks less likely but the resource is still there, the demand is still there and the tax (despite being announced in a stupid and ill thought out way) is not there and I don't think is likely to emerge without some major changes. This means upside for ESG.
What all this does mean is that we won't see a takeover in the next few months - Oh well, we may not have done anyhow.
Probably the SP will go back into the 60 cent area - oh well, been there before, good buying!
Probably this will give ESG the chance to prove up more reserves and become bigger and stronger before being bought out.
We have $ in the bank We have gas in the ground GLNG is not going to fall over - think how embarassing that would be for Rudd in the run up to an election. Qld is critical electorally. These guys would kill their mothers for a day's headline - they will not want to be seen as the Government that killed a major industry. A deal will be done.
So until then it's farewell to the short term speculators. I can wait.
ESG Price at posting:
77.5¢ Sentiment: Buy Disclosure: Held
