"........... The drop from the mid 40c range to 18c just doesn't seem justifiable to me............"
Howdy NZT. Have been watching all this from the sidelines, gritting my teeth buy while all the time staying out of the fray. Afraid the drop from mid 40c down to .18 is totally justifiable given the 2 things Mr Market likes least of all are negative changes and uncertainty. As you go on to say though PAA has done and continues to hit 4's n 6's from a scientific perspective on a regular basis. To continue the metaphor few quick wickets and we now see a couple of new blokes out in the middle. Sure they need a bit of time to settle in and get used to the light but boy oh boy do they have the opportunity to run up a good score and in pretty good time. To give them an even better go at that the umpires brought the boundary rope in by a few metres so there is a greater opportunity for more 6's now than before. Just a few months back I was shouting from the rooftop via a sailing metaphor that there was no way PAA should have a MC of less than $100 mil and that would only bring them up to a value they should be starting at. Since then we have a fresh new captain & crew on board, FDA has placed a bet that PAA's allowing it to release the spinnaker. If that value proposition was valid then it is an easy understatement now. Surely the starting line has to have moved back up to a conservative circa $150 - 175 mil MC so SP of around $ 0.40. Normally one would expect the granting of ODD would do a lot of that heavy lifting but in this case understandable that did not immediately occur. My guess is that as the water settles and a bit of positive news comes our way then things may play a bit of catch up. the only downside being the window of opportunity to take a position at the current discount will have evaporated.
For all the good bad or indifferent opinions we may all have had from time to time, wish to thank the previous Board for their effort and to welcome the new Board. To be presented with the opportunity at hand is surely one to relish. GLTAH
PAA Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
