solimar

Excellent news attached to the meeting notice yesterday - two Directors with ample experience, and the renaming of Livingstone to Solimar.

Although the most recent "miss" on drilling at Ventura seems to have scared some short-termers away from this co., it would take a very game (stupid?) company to rename themselves after a doomed venture. The assets of Solimar are more than one well deep, but that aside it seems to indicate an [extremely] positive stance on the sidetrack drilling currently underway. IMO, the current share price has adjusted more to reflect an increased risk premium (that is, the drill options on Ventura are reduced slightly) than to reflect any long-term doubt over the company. Definately a case of enduring the short-term bumps in favour of long-term gains.

Using their timetable, we are only 7 or 8 days away from some better news on Ventura (this could come as early as the end of next week). Looking at the current SP, a 50% retracement to 19.5 appears to be about it, so the current price seems to adequately reflect the increased risk margin. My view - good levels between 19 and 22 to get some on board before we see some more positive news. For those wanting to look further into this, have a look at multiples of LPL versus other similar ventures, and then try to keep in mind that Solimar will be pulling stuff out of the ground well before your other 2-cent explorers. Cashflow is king I'm afraid, so my bets are on black on this one.

(all humble, self serving entertainment and opinion - do your own research and be happy :)