The current SP of AUD$0.096 cents continues to track below the company's cash equivalent. (ie. Cash AUD$24 mil / 237.7 mil shares = AUD$10.0 cents).
Furthermore, the value of any producing assets (Marathon and Main Pass) are either being ignored or entirely discounted.
I put this down to the market applying a very cautious approach to valuing this company and it probably stems from it's rollercoaster journey over the past 16 years.
The SP has moved from dizzy heights in Sept 97 of +AUD$6.00 down to AUD$0.07 cents in Oct 2000 and has regained ground in May 06 to +AUD$3.40 and now down again to AUD$0.096 in Oct 2013..... and hopefully ..we may yet see another rebound in the future!!
Based upon this rollercoaster journey I guess the market sentiment is explainable.
Since the commencement of the third quarter (ie Jul - Sep 13) the landscape as far as new wells or any other deals / opportunities do not appear to have progressed enough to promote their existence but at some point in the future I am hoping this will change ....
And so with little excitement to stimulate the market we must endure or pull out ? ...
I'm staying for the ride.
Cheers, PeterRG
PSA Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
