Morning All For those who didn't bother, it's worth reading the...

Morning All

For those who didn't bother, it's worth reading the self-penned retrospective 'Fox In The Hen House' piece to which Adaltiora refers in his/her primary post. Written in July 2021, it's a pithy and perceptive analysis of the WGO value trap. In essence, it argues Warrego's management has blithely ignored the threat posed by Strike success at SE1, exposing their shareholders to the risk of becoming marooned in a WE Phase 1 backwater while the good ship STX steams into its 100 per cent-owned ocean of possibilities.

As Adaltiora points out, that process is already underway. Sadly, I found posting a comparison graph of STX/WGO charts to be beyond me, but suffice to say the price divergence over five years is shaping as a classic jaws formation (no pun intended). Strike continues to make higher lows and highs, while Warrego bumps along barely raising a whimper.

Oh, and by the way, did anyone notice Friday's S&P indexes announcement in which WGO was tossed out of the All Ords? In other words, out of the top 500 Australian companies. And as Adaltiora says: There is no apparent strategy to reverse its comparative slide. As things stand, a successful SE1 announcement tomorrow by Strike would leave Warrego holding an invoice for SE Phase 1 development with a promise of fulfilling one gas contract ... and the very real prospect of no Phase 2 for many years.

Like all of us, I am hoping for a bumper announcement tomorrow - if nothing else, Stuart deserves it for his leadership during the WGO-inspired GWC debacle. Having spurned his own bonuses as penitence for a price plunge of someone else's making, he would have to be a saint to resile from gloating about a huge discovery at SE1. I suspect he will don his halo and refrain from doing so ... whilst surreptitiously polishing his Doc Martens to give the Scots a damn good kicking in his plans for next-phase developments. One suspects that will involve parking the WE Phase 2 bus while he zooms away in the Walyering/SE/Haber Tesla.

Good luck to everyone tomorrow.

OOO

The source graph quoted above can be found at:
STX Advanced Chart - Market Index
https://www.marketindex.com.au/asx/stx/advanced-chart