I really enjoy the ESG threads - of course, in the coming months it will become even more interesting.
I don't know if ESG will go at all, and if it does whether or not it will go 'cheaply'. This concept is predicated on what the 'fair value' of ESG's resources and potential is. So difficult to determine and, of course, the 'market' ultimately determines the actual value.
So, what can I, as a humble and simple country boy do?
Firstly, I don't like to spray my investment funds around too thinly (except after about January 09 till about April 09 where I bought everything I could). Since taking 'post GFC profits I have tucked much of it away into property and my funds ear-marked for equities have been mainly directed to where I feel the future returns are in the next 10 years - gas.
I have liked Origin for a while and have built up a tidy folder on them and APA too - remember Levi Strauss made money out of selling jeans to the miners - I think APA is the same - who knows.
Back to ESG - personally, I would love them to have a go at it alone - I am happy to sit and watch it grow over the next 5 - 10 years. That would be exciting and rewarding.
However, there is a chance that it will be taken over at some stage - maybe at a good price or maybe not. As a humble shareholder I do not control that outcome.
Again, so what can I do - well it is quite possible that the 'bots' / shorters will work ESG over at every opportunity in the next 12 months. As I see it this results in a transfer of shares from those that are for some reason or another not in a position to hold the shares at the time (or have made the decision that ESG does not offer the value that they desire).
For me, I am happy to let the bots / shorters run as I will be picking up parcels of ESG at strategic times and will hold these shares.
In the end, whatever ESG goes for or kicks on to be valued at - I am very confident that the price I have paid and will pay per share will be amply rewarded.
Sorry for the long post, I don't get involved in the discussions about future value permutations for many reasons but I wanted to take the opportunity to share my approach with others - for what it is worth.
Portfolio Plus - feel free to cheer me on and enjoy your recline on the lounge in a guilt free position :)
Good luck to all - and a great weekend!!
ESG Price at posting:
84.5¢ Sentiment: Buy Disclosure: Held
