The stock market is incredible and unpredictable.
The stock market is a device for transferring money from the IMPATIENT to the PATIENT as Buffett said.
LNG.ax share price has been punished heavily over last four months, tumbled about 70% because of falling oil price, fear of failure, shorting, stop loss, margin call, etc.
Institutions make profit from shorting by directing/manipulating share price, spreading news (oil price going $20, etc).
Mum and dad investors have bee forced out. Eventually, there would be only around 10% - 20% investors can make fortune.
Delay of finance close from mid 2015 to Q1 2016, was not new, so main driving forces for this sharp fall are, falling oil price/gas price and dramatic fear of global financial downturn.
Crude oil was falling to US$35/bl during GFC, then recovered above $110/bl in about 2 years time.
Crude oil dropped to US$39/bl again few months ago, then it should be recovering over next few years.
LNG.ax is charging fixed management/tolling fees, not exposed to commodity price, although falling commodity price does affect energy industry.
With a busy quarter starting today, remaining binding tolling agreement, FEIS (on 16 November 2015), EPC, news re Bear Head, should fuel recovering share price ahead.
LNG, currently has net cash around $160m (estimated), was $181m on 30 June 2015, no capital raising risk in near future.
I believe LNG presents a great investment opportunity at current price.
All in my views, not considered as advice.
LNG Price at posting:
$1.34 Sentiment: Buy Disclosure: Held
