If you had handed me the last 6 or so announcements two months ago and asked me to guess the SP I would have said "about 14 cents".
But it is not 14 cents. What's happening?
For starters, there are many people jumping at shadows at the present time. There are historical reasons why people should be nervous, but this is getting out of hand. Every hint of a delay, every ambiguous adjective, and even today's TH has seemingly sinister overtones. I too am nervous, but I think we all need to take a small step back and look at the reasons why we invested in the first place. Putting aside the lack of SP movement of late, ask yourself this: if you were handed those last few announcements when you bought in, would you have been happy?
More seamingly good news today and now movement. To my mind this confirms one thing: The SP will not budge until such time as we have confirmed flow rates. Those in for a quick buck won't find it here (in the short term at least). Initial testing may give a little boost, but a full-on re-rating awaits successful flow testing and a reserves update from RPS. Nothing more, nothing less.
That will take time.
Cheers,
Disco
GDN Price at posting:
12.8¢ Sentiment: None Disclosure: Held
