LNG (ASX) Ann: Shareholder Presentations

Originally posted by doctornoh ↑

While we have had so many Australian instos and commentators recently doubting the fundamental business model and questioning the rise in the SP we have US instos supposedly rewarding the entrepreneurial spirit of MB and the company. They know that you cant create a multi billion dollar enterprise without starting from scratch and taking on risk and going through the process. Rather than focusing on the rise in value to date they focus on where we will be in a year or two.

Seriously, where would our SP be if it wasnt for the US hedge funds and Stonepeak who sniffed out, on paper anyway, a so far excellent multi bagger trade and supported the capital raisings the company needed to fund Maggy in the early days?

No wonder Australian "start up" companies find it so hard to create value here in Australia and seek to move to the US. I dont think its a coincidence for example that Silicon Valley is in the States. In this context a US listing just makes so much sense, as flagged and discussed for many months now.

Given the excellent update during the recent shareholder presos, and if it is true that our FERC Schedule is due in a couple of weeks and then first of the binding toll agreements by the end of the month, then whoever did the buying from $3.00 all the way up to $3.70, with some expertly timed shakeouts along the way, may have played a blinder.

I also think many of us sitting on large paper gains, who stuck with the company in the oil dog days of January when the share price hit a $1.90, may also be on the cusp of having our conviction in our own analysis of the LNG business model and the vision of management rewarded with two KEY derisking events that may see another wave of buying from more risk averse buyers, like we have said many times before on these forums.

Cautiously excited but less cautious every day it seems.

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In some respects you're right about the Australian instos, Doc. But on the other hand, Australia has a strong track record when it comes to entrepreneurism in international banking and finance - particularly asset, project and infrastructure finance (think Macquarie Bank, Babcock&Brown, airports, toll roads, cross-boarder and leveraged leasing). Remember the Stonepeak guys are ex-Macquarie.

That more Australians don’t recognise this as an infrastructure-play (and not a mining/resource/oil&gas-play) surprises me.