I've read with interest all the recriminations about the capital raising but sitting here on a sunny Saturday morning all I can see is that last week I held a stock at around 70 cents which was going strong and had enough money in the bank for a few more months. This week I have a stock at around 70 cents that is going strong and has enough money to see it through the next year or more.
Call me simplistic but I am happier this week than last week. Management did the right thing, they looked after the future of the business when the opportunity arose. In these uncertain times I would not be grateful if management had played a game of brinkmanship.
For those who say the we should have waited for the results of the laterals - that is all very well but what if there are technical issues, delays or the initial results disappoint. These things could all happen. Management have sensibly managed these risks down.
Also I think the price that a predator would have to pay for ESG has just risen - the company is in a very strong position to defend itself against unwanted approaches and does not have to consider offers from the first buyer to happen along. I want to see a bidding war for ESG, we are more likely to see one now.
ESG Price at posting:
67.5¢ Sentiment: Buy Disclosure: Held
