Well explained thanks. Gee I hope W4 goes smoother than 3 and...

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Byron

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19/01/21

22:01

Post #: 50288427
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Originally posted by Pledgetub: ↑

Despite some investors being annoyed by the share price differential, I think now more than ever it is a great opportunity to accumulate in days of weakness and low demand.

Strike by all measures is a better company, better management (although many will disagree here) and also holds larger prospective land, which may very well hold a monster.

That all being said, it is also several times more expensive, share price means nothing, but the market capitalisation differential now means both companies have upside, but with the low market cap of wgo, there is certainly a lot more in the short run that could be gained from wgo.

I find it hard to imagine that strike will deliver the same percentage return from here within a 1 year time frame.

I have been a long term holder of both, and prefer strike as a company, but at these prices my money right now is going into wgo.

I would hazard a guess, if we 4 and 5 turn out successful then wgo will benefit the most in percentage terms.

For example, if we discover something larger than expected at any of our upcoming drills in 4 5 or 3, and so went up 3x, wgo would be sitting at roughly 68 cents. Stx would then have to be trading at over a dollar. In market cap terms (assuming no additional shares on issue) we wgo will be (666 million and strike 1,680 million). And that is after strike lower share price today of 34 cents.

Although it’s an extreme example of upside, it paints a picture nonetheless.

Full disclosure, my opinion isn’t worth anything but nonetheless, interesting point. And sorry for any grammar issues as I am on the run.

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Well explained thanks. Gee I hope W4 goes smoother than 3 and find some good gas, dam well need it to move this puppy

WGO Price at posting: 22.5¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

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