Bonzaboy, the mkt often overlooks stocks and rarley values them...

Bonzaboy, the mkt often overlooks stocks and rarley values them properly

Why is MEl so cheap? well why was PES trading under at 80c prior to BGs $8.25 final takeover??? I mean surely the mkt could see the value in it?

MEL is not a speculative explorer, its has substantial resources which cleary need a mjor player with deep deep pockets to commercialise and de-risk their path to development

But I note the following comments from Morgan Stanley's update research on ESG

We raise our price target for ESG from A$0.80 to
A$1.10 following Santos’ July 2 announcement to
increase its interests in the NSW Gunnedah Basin. We
reiterate our Overweight recommendation and note the
growing momentum behind NSW CSG........
The transaction implies an EV/3P multiple of
A$0.74/GJ of gas. The per GJ multiple compares
favourably to 08/09 asset deals in the space which we
estimate to have averaged c. A$0.85/GJ.

key part their "note the
growing momentum behind NSW CSG." and "The per GJ multiple compares favourably to 08/09 asset deals in the space which we estimate to have averaged c. A$0.85/GJ.


Do the math on what MEL's 1500 GJ's 3P are worth at 85c/GJ as opposed to the current 5c/GJ

I agree though MEL need better management and also a major in their corner to help foot the bill, or kill 2 birds with one stone and just get taken over