good post, just one of my businesses has twice the revenue, and...

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21/06/15

11:11

Post #: 15503074
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Originally posted by Megagene79 ↑

Oil stocks as with the oil price took a major beating over the past 12 months. Management here did well to sell the Raven project for 10X its book value as the oil decline started to pick up steam. I agree they should cut administration expenditure which in turn would give the market a clear indication that they are conserving the cash they have and are looking to create value for shareholders as they stated in their AGM presentation. They have also stated they are assessing opportunities which may be a driving factor in a bounce and re rate here from its bottom. Just as they surprised the market with the sale of Raven at 10X book value they may well have something up its sleeve's on top of the current 2 projects which are producing but need more to deliver a cash flow positive position with the flow from Shari Lynn No.1 well results which are due soon adding to current wells.

Management clearly stated in their AGM presentation they are focused on creation of value for shareholders via cashflows, EPS and shareholder return. I dont believe a 5>Disallowed re rate will happen off the current projects. Oil has risen off its bottom and where it heads from here will be a clear driver for PYM and other oil stocks but management need to clearly focus here on their stated goals of creating shareholder value and returns. The 2 current projects although producing are not creating bang for buck for holders and i believe a bang could possibly come from other things or moves they will make just like they surprised with the raven sale at a price that surprised the market. Id say keep a close eye here on any more volume that may indicate things are happening behind the scenes they continue to assess.

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good post,
just one of my businesses has twice the revenue, and G&A would be circa $200k PA, with a pro-rata share of my time. 10-12% of revenue.

$2m is just ridiculous for the size of these projects...and 200% of revenue.

I wouldn't invest unless they clearly show they mean what they say. Unfortunately this end of the market have a habit of selling the china to keep the management well feed.

PYM Price at posting: 0.6¢ Sentiment: Hold Disclosure: Not Held
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