Well before HGO sold out of its direct exposure to ESG, I argued on the ESG thread (not successfully, mind you :) ), that HGO was a better exposure to ESG's upside than ESG itself.
That still remains the case. Great gearing, without the downside capital risk.
I hold a few ESG directly, but far far more in HGO.
I notice that David Archer didn't own any ESG, even though he had lots of exposure via HGO. That remains the case.
Any one of three catalyst that HGO mention could cause HGO to more than double - Kanmantoo sale, ESG takeover, further success in Indonesia (esp. once drilling starts next year).
If all three happen, holders will have a large multi-bag gain.
And all backed by cash and tangible assets.
I guess it pays to be a 'stayer' :)
Y
Sorry if I sound like I am ramping HGO. I am just excited about the upside. (In fact, I am still buying). Research and intuition say to me this will be a very successful investment.
HGO Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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