a reality check

R/Dog posted a few days ago on Schwing 2. What he said made a lot of sense, and I believe the important elements are worth reiterating.

"... the zones at 11810ft and 11870 ft have good shows that essentially will pay back the cost of the hole. beyond that, sands at 12500ft showed excellent reservoir quality and oil and gas shows. Much like Hoffer, the zone is thought to be relatively thin, but wide with possible production of up to 800 to 1000 BOEPD (that's up to $36.5mUS annual revenue), with this to be confirmed by production testing. Sands at approx 13000ft contained stringers of excellent porosity and permeability, with some good gas shows which may indicate up dip potential in the immdeiate vicinity. essentially therer is no risk in this hole and AMU is confident it has the goods to warrant further exploration of the feature".

Now, I, for one, read this to be an honest appraisal of schwing#2 at this stage, and founded in direct knowledge. My take is pretty positive.

I therefore think that whilst it is highly frustrating to see the stock sold down yet again, it is simply a product of short term traders, and the generally lousy market.

I keep returning to the point that this stock is trading on 3 times maintainable cash flow; cash flow which is growing each and every week. The share price will not stay at these levels for ever. The world does not work that way. Often very hard to predict when market sentiment for a stock will change. This will just take someone with some serious dollars to want a decent slice of it. That is the only thing which will turn around the lagging share price.