Appreciate your thoughts which add to the value of the thread.
No particular reason for omitting AYO and will look at them next week. I try to see what the market is saying about companies rather than trying to value the companies themselves. Doesn’t always work. But in relation to AYO for example the market is not giving it the value you and I see in the stock and I think, rightly or wrongly, that can be put down to war jitters. So until that situation sorts itself out I’ll keep a watching brief on AYO.
But then there are a lot of undervalued stocks at the moment including ARQ, AWE, PSA and HDR. It is a reflection of the lousy sentiment for shares in general but this will change eventually. It always does. And when it does I’ll look to buy some of these stocks.
I wouldn’t say I follow the greater fool principle rather the “turtilian” approach, accumulate in slow periods ahead of a drill and then sell them to folks who have a higher risk profile than I do. Doesn’t always work and I don’t always follow the theory. But when I don’t I lose. Also try to buy on bad news and sell into good news particularly in this market when stocks are so “spikey” in reaction to media releases.
Other thing I and others are guilty of is falling in love with a stock and being unable to see what the market is actually saying about it. Maybe I am that way with PSA though it has been good to me so far, one of the few. I thought Horizon could do no wrong, how silly was that? Cost me big time.
Agree with your comment about the prospectivity of Australian Basins (just finished reading Rick Wilkinson’s book “Where God Never Trod”) but recent drilling experience suggests that you can still make a dollar or two out of small Australian pools. BPT is an example, ARQ another and they are not alone. Might not be any elephants remaining out there but certainly will be more smaller finds.
On PSA, can’t be a GOM producer who isn’t making a mint at the moment. Be interesting to see if they let the market know what revenues are like this week.
Greed can be good or bad just depends on what you are greedy for!! Me I can't get enough of the quiet life.
