Games that are afoot., page-9

Hi Mike,

I am over-invested in this so I believe that it is cheap. I am a bit guilty of seeking confirmation of my view.

My initial exposure to this company was through my 'Intelligent Investor' (a value investing publication) subscription which recommended this as a speculative buy. They were quite positive on this stock until the oil price drop and the activity from CY and the strategic review. They don't blame management for the lack of hedging prior to this point implying that hindsight is 20/20 (paraphrasing).

At that stage, their view was to hold on and see where things lie. The implication was that the company could be wound up and returned to shareholders for more than what was then the current price (high 30s?). I don't know their position now as my subscription expired a while back (someone could check with a free trial subscription if bothered).

Independent of this advice, we should get an impression of what we think the company is worth for ourselves (based on assets and future income). If the shares are available at below this price (with a safety margin) then we should consider buying.

I would have thought that some of us would be topping up (I did last week), but there doesn't seem to be a lot of interest. Perhaps, this company will come up on more radars as soon as it's net profit after tax is positive.