general public entitlement offer now open, page-17

Auto,

Indeed I bought igo at various prices finally doubling sub 2, but it was your selling at a little above cash backing that intrigued me because it indicated an inability to recognise the non-cash wealth within. Esp seeing as with many of the stocks you chase, eg TAP, it appears you put excessive emphasis on the cash backing, which imho only has significance to the point of reducing several risks, eg CR, firesale of assets etc.[And no the igo rebound wasn't solely commodity based, as it's peers more leveraged to the pon had much more modest recoveries].

Seems to me that TAP is a classic Autosime trap, a stock in which one might be able to successfully trade out of an otherwise declining/drifting LT story. Cash is only insurance. First, second and third must be the merits of the rest of the investment, and imho in the case of TAP that is mostly such typical oiler roulette wheels, but with no idea who will be heading the team.

I just don't get the "investment case" for TAP. Have run the ruler over the assets a number of times over the past 7 years, and always seems well supported by reserves and cash, yet both and the sp have been in LT decline over that period due to hugelargely fruitless exploration spend. Just can't see why that would change now, bar for luck, and luck is not something I invest in (except perhaps where it habitually strongly associates itself to a CEO).

For me the GFC was the end of the era for me as far as ASX oilers. I will now only touch what I see as an exceptional story, and then still treat it as high risk. As a bred they are wealth destroyers, and TAP appear to me as a well bred pedegree in this respect.

EL