SHE 0.00% 0.9¢ stonehorse energy limited

Hi Credit dumbness,. I understand that David Deloub runs both...

  1. 2,039 Posts.
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    Hi Credit dumbness,
    .
    I understand that David Deloub runs both AVW and SHE and the share price of both have gone down.
    .
    But AVW is a lithium based company and the price of lithium has plummeted, its even been on ABC news. Also AVW was in a bad risky financial state before David Deloub joined and still is, I would not have touched it with a barge pole., now that lithium is falling i think AVW days are numbered unless they find a huge pile of lithium, I saw AVW as a very high risk but if they did hit lithium you might be able to profit on it.
    .
    Companies in similar business to SHE.
    If you look at Brookside Energy, its share price has fallen from a mean of 3 cents in mid 2021 to around 1 cent a few weeks ago. that is a fall of 66%, yet they opened lots of wells and have really grown and did invest.
    It the same story with Stone horse energy, but it has fallen a a bit less.
    .
    A lot of small oil companies are in the same position in terms of share price, yet as you know SHE has large cash reserves relative to market cap, is making money and its revenue is growing.
    .
    Hence i do not blame the share price fall on David Deloub but on the way the market sentiment works and people deciding rightly or wrongly to ignore the fundamentals.
    You only have to plot SHE earnings or revenue over time to see how its growing. Its precisely because it is so cheap that makes it such tremendous value, if it was fairly priced it would not be such good value and i would not be holding it.
    .
    Also Oil has been vilified by activist and media seem to paint it negatively, yet it is essential for our civilization.
    I could go on about lithium based EV, but time will tell on that one.
    In addition due to covid oil price for a day or two went negative !, hene the increae in volatilty..increase percieved risk and lower P/E ratio we now observe.

    I think as others have said ,David Deloub could have painted a forward looking strategy, to say where the company going.

    It would be interesting to ask look back in 2025 over 2024 to see what has happened.

    Interest.
    I believe SHE was earning interest on its cash..correct me if im wrong, But i think they have repatriated some of it back to Australia where the interest rates are lower than in the US. But yes I agree they should have aimed to maximize interest rates on several millions as this will add up to 100,00 thousands.
    Maybe its opportunity cost, he did not want to lock it up for to long... don't know the reason.

    Brokers
    Because SHE in under priced and nano cap then that will put off a lot of brokers from recommending SHE, depressing its price, its like catch 22 ,or a negative feedback loop, plus some holders are very negative and hold/voice very negative sentiment on the share price. Others read that, and sell and price goes down and so on, This creates a feedback loop driving the price down in a negative bubble. Talking about the share price being SH...T is fair enough but the Share price is not a reflection of how the company is actually doing, The company fundamentally is doing great relative to Share price.

    Market dynamics and the Ising model.
    Their was a very well known paper published on market agents/participant behavior and sentiment. and it outlined a model, where basically a lot of people decided whether to buy, sell or hold based on what other say, so you get these states where their is massive negative sentiment or positive sentiment and the price stays over or under priced, because they are all echoing each other.. the Share price is sh..t ..company is rubbish, company destruction ..yadda yadad, or the opposite The share price is going to the moon, we going to be the next Microsoft or apple yadda yadda etc.

    But then due to catalyst or a hard to be ignore fundamentals this phase or state of the market sentiment of a company change, sometimes very rapidly.

    What brokers have said about SHE
    Also because SHE is very small most brokers i have asked have advised against buying the company since it was so small.
    I know this because i asked them , i also bench marked their recommendations over a few years and found they did not beat the market.

    SHE Size
    Stonehorse energy market cap is so small no one reports on it, apart from auto generated algo's that ignore what really is going on and do not read the announcements in depth like those on this channel do. So most people are just no aware of SHE, how many people are going to bother reading the announcements on SHE to get to Kernal of SHE, if they read the company is being destroyed.

    Anyway , time for others opinions.










 
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