sp, I appreciate ARQ are making good money - but it's not so simple as that. Reserves are an issue and IF hdr had hit a couple of sweet spots this year do you think the price wouldd be where it is now despite the lack of any cashflow for about 15 months?
Hindsight would be wonderful, and had I known the results of this year's drilling to date then I would have moved temporarily into ARQ - or if I'd had hindsight with CUE as well that's where it would have gone for a while. I backed my judgement on HDR having one meaningful success in a new exploration area before Christmas, as per previous years (they've had more miocene drilling targets this year so that wasn't an unreasoinable assumption I think) hey presto, it didn't come off. That's the breaks. What have I learned? probably not much, I have always been good picking the lows and I've made fabulous gains with a little trading from time to time. I've made my quota of cash on HDR already this tax year and am accumulating again while there's a lull of news, as per last year. Will expect to hold for 12 months at least, by which time HDR will be $1 more than now as ching is a few months from producing and tiof to be developed thereafter. Hopefully there will also have been one or two driling success stories by then to add to the sp.
I note stockanalysis has ARQ as at least 1.40 (I'd be interested to hear your views), but HDR suggested as buying at around 1.70. It might suggest more value in HDR at the moment, although I think risking a short term lower sp. But, I've never bothered about a few cents here or there.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
