FDM 0.00% 1.1¢ freedom oil and gas ltd

MAD sentiment

  1. 108 Posts.
    Hi all,

    Just wanted to discern sentiment in these ramparts on MAD! On the upside, the $500MM+ loan facility from Wells Fargo at 2.1% interest rates, a low oil price, and likely upcoming credit re-rates from US banks on the oil and gas sector next month which should translate into more opportunities on the acquisitions front (and don't forget many companies borrowed at 7/8/9% type interest rates, meaning high risk-premiums attached). On the downside, low oil prices (operationally), cash burn, more promises than results, and a lack of shareholder communication. For me, it's currently a hold - and it's worth noting that WF wouldn't provide such a low-interest facility to Maverick if they didn't have high confidence in the team, as higher risk-premiums are attached to loans with greater uncertainty (meaning a higher interest rate). On the other hand, I do wish they'd communicate in greater depth with us, but I do appreciate the comments given by Yeager in the interim report recently - I hope that continues. My average price on this stock is 15.3c. I certainly think patience is required on making the right acquisition to drive long-term value but surely they could engage in small acquisitions to help on the cash flows front? Interested in thoughts that other holders harbour.

    Not a stock to hold your breath on - more like watching the grass! Zzzzz.

    Cheers, and good luck to all!
    DJ
 
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