sixteen times sounds rich IMO. I have read the notes put out by DJ's and Hartleys and can understand where the value lies, but at the end of the day this stock will REALLY move once two wells are flowing. A lot of people may look at this and say "one well, in Ukraine, tough work".
Some of the risk adverse money will stay away for this reason. As the company continues to sink production wells, my opinion is that we will see a multiplier effect on the share price as we will see funds move in for exposure with the lowered risk of multiple well production coupled with the company then trading at more 'normal" earnings multiples.
Investors want to see the little HOG with a few irons in the fire, one lonely well in Ukraine is just the beginning.
This "multiplier" point is not too far away, so its time to get exposure to the HOG, and this is why i think we see the SP edging up. Its simply time.
SO glad Rich Reavley is back at the helm. Well done on getting him back on.
HOG Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
