I don't know why the stock slumped either (I am guessing margin selling), but the company has announced a share buy-back program, so they obviously think it is cheap (and how many junior E&Ps have the cash luxury of buying back their own shares?). Also the cash flow speaks for itself. 1,000 bpd was achieved a month ago, so revenue for January will probably be over US2m.
Markets can be strange and, in the near term, share prices move for unrelated reasons. We have had a severe downturn, followed by a buyers strike. However, buying SAE at this level is not blind faith, because we know they have plenty of cash, A$14m in the bank, and fantastic cash flow. This alone, way undervalues the stock. If NY comes in, that will be a bonus, as with any of the other large exploration projects they have over the next six months.
Hold an ye will be rewarded.....
SAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
