barnett shale well spud, page-5

Magpie 78
"when is some liquidity going to come back into this stock ?"
Mate, its a great question. I spose the short answer is when the market recognises it for the quality business that it is.

As Colonnade so eloquently stated "companies that make money dont stay cheap for long", he makes a few very good points. AVD is not as sexy as some of the other o&g plays atm, a bit boring for some,lol. However, this is a young & strategically growing Co that has a disciplined approach to its business model & growth strategy & as a result it has a lower risk profile imho

i have said b4 that imo there are probably 2 obstacles yet to be overcome...
1- a full cycle of the business model as defined by the successful acquisition-development-exploitation-profitable disposal of an asset, thereby demonstrating the integrity of the model.
2- A disciplined larger scale acquisition in the $10-20m range to really set a fire under it

I agree with you that it would be very positive to have a respectable insto take a decent position, but this Co is young & the model is not yet fully executed.I dont believe that j/v partners is the way to go as they have all the technical skills that they need and no trouble raising funds, thanks to their line of credit & the likes of deadnick and his con notes.

this stock is a longer term proposition but one that imo will pay off. they have achieved a positive cashflow operation in a relatively short time & are receiving the benefits of record oil & gas prices and demand for their products.

" whos fault is that ?" you ask. I'm not really into the whole blame thing or playing the man, very uncivilised,lol. But i spose if you wanted to do a bit of director bashing you could probably say that because they have not yet nailed a SUITABLE major acquisition (as is their stated aim) this could be holding back the sp's chances of a rerating, but i would prefer that they waited for suitable assets at the right price rather than pay too much for riskier assets.

ofcourse these are just my opinions and it all depends on how you choose to look at it and what your timeframes are.I would be happier if the sp better reflected what i thought the Co was worth, but i am patient and perhaps my time constraints are different to yours.

regards