I also love EPG, the more I dig into it the more I realize the potential of this company.
1/ Valuation is very low since the market still does not understand that Transcor will not be able to take over the assets if the company is not able to repay the convertible notes. And I would think there are several parties interested in bidding for these assets if they were for sale.
2/ EPG has finally got a team of established professionals that know how to run an exploration company and have the right access to attract JV partners to develop the assets.
3/ Gas prices in Europe are still pretty high (a multiple of gas prices in Australia).
4/ More and more service companies are coming to Europe so drilling costs will continue to drop, improving the economics of developping unconventional gas projects in Europe.
5/ Shareholders' interests are represented on the board with the main shareholder of the company, controlling the Board and making sure the Board and the management work for the shareholders not for their own benefit.
6/ Momemtum on the market is building up slowly burt steadily
7/ I don't think we are the only investors, Pixie, understanding the massive potential upside in this company but my take is that institutional investors are waiting on the side until they get more clarity on the terms of the restructuring of the notes. We will likely see a massive buying power coming in once the company announced news on the convertible notes.
All in all, my view is the current mispricing of EPG will not last: the risk/reward ratio is too much in favour of being long this counter.
EPG Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
