OEL 8.33% 1.3¢ otto energy limited

Breakaway Research Report - Aug 2022, page-14

  1. 8,955 Posts.
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    The disdain for Otto, based mainly on the past, and resultant low sp makes no difference to the amount of USD cash revenue they're currently making, which increases in Q4 as new production comes on stream, hedges roll off, and Loan/interest paid in full.

    However the prudent but boring growth strategy, which I agree with, doesn't lend itself to trading gains for punters.

    The question then is what initiatives can Otto take to get some of that cash into shareholders bank accounts, while we're waiting for the big corporate move/s that may or may not ever happen ? ie, real cash, not maybe cash one day.

    Divvies, nope, not tax effective.

    Most likely imo is re introduce the consolidation plus a buyback. The previous plan included a buyback of unmarketable shares, but if the current development program meets expectations and the sp remains heavily discounted, I'd say a standalone buyback is then warranted and well within Otto's finances.
 
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