Went in for another punt, got to like these 1.15c entry prices, still cant bring my average cost down from 1.5c though
Technically speaking there were about 100 companies in the US (that i screened for) like BRK 10 years ago that distributed all earnings as cash, its not just private.. I know because i was invested in a few.
The reason why i think its not taking off as some hope is because (a) its a microcap and (b) ESG mandates for some funds / negative views on oil and gas and potentially (c) DP at the helm (wtf is he doing? BB was half assed and no direction all this year). Mainly i look at (a) being a primary factor, i mean we are so irrelevant to most managed funds that even if they wanted to buy shares, their investment strategy would not be in line with BRK's characteristics.
Any real value derived from this stock will come from takeover/purchase of land which DP cannot get done. Therefore, hired a CFO and looks to get BRK to drill everything themselves (obviously risks involved). The issue with this is, it means we are only going to probably drill max 4 wells per year (realistically) then if there is a remote stuff up or mishap with drilling, then its going to delay EVERYTHING and/or incur a loss in profits and potentially increase expenses to rectify.
I dont see a JV happening, unless its a small player like SHE or another microcap because why would small/medium/large cap business want with a micro like us, they probably spend our annual revenue amount as payroll - like you got to look at it realistically (SHE didnt opt to continue on a partnership with us either, section C/DP effect).
The thing i want to know is what DP intends to do with the profits, because if he intends to keep increasing land holdings and drill more in the SWISH AOI that is all good but he has promised a Buy Back this year and did that half assessed (see section c above) which is why i am a bit worried (as well as the increased risks of a drilling failure or mishap).
Dividends are not ideal, buy backs dont get implemented properly so i think you can wipe them both out. Best outcome is to potentially invest outside the box (Oklahoma) and try and look for other projects to jump in on and get an interest (kind of like what HZN is doing). Then if you look at HZN and its share price, it hasnt done much either (not as bad ROI then ours due to PHAT dividends) but i think this comes back to section (b) above.
So i am just rambling on but i am going to hold and see what the news is within the month (while purchasing odd parcels), which i think will be to drill ourselves the land, and see what the SP does (probably nothing) but if in the odd chance the price moves up, i might take the loss and close a portion of my position depending on the announcement.
(20min delay)