Thoughts on investing in Swick, page-2

Jacko there is a long list of broken commitments and lack of performance here over many years. The market, and rightly so, has zero confidence in these guys ability to deliver. The only reason it has been sitting is because it is supported by a buy back. Majority of sales are consumed by the buy back with very little external interest. No matter what comes out you would have to be a very brave individual to believe it here.

The elephant in the room is Orexplore. To date they haven't been able to get it to work and or commercialise it despite numerous claims of how successful it will be including a failed attempt to separate it from the mothership. Will be getting close to $40m sunk into it shortly with no return. So basically it has consumed the market cap and or any profits from drilling. Random capital raises have failed shareholders including participants.

If you believe in the tech and the ability to commercialise it there could be gold at the end of the rainbow however at the moment there is more chance of knocking over a leprechaun at the local bar

Drilling is pretty simple. Total rigs in use and metres drilled is a pretty simple equation for utilisation. The tricky part here is they have a consistent habit of announcing new contracts (particularly OS) and then crying poor over start up costs. We are better off not winning new business and just drilling away on existing. I think they have been embarrassed that many times that they now prefer to say little so as not to lose face once again.

On the plus side if Orexplore can be commercialised or alternatively killed off there will be profit. The dividend provides a return whilst one waits. It is possible for it to outperform however beware the boy that cried wolf. At these levels it is probably reasonably safe although you could be akin to Methuselah by the time it comes good.

With a bit of chump change it is probably worth a punt however under current management a road to riches it is not.