With current negative market sentiment and commodity rout, investors are valuing cash/cash flow more than usual. Despite of the potential, offered by LNG, its business is yet to generate any positive cash flow and it takes possibly another two years to complete construction phase in Magnolia LNG and process its first train of LNG.
At the moment, I am waiting for LNG to complete its financial close/secure funds, otherwise all its previous hard work is wasted. It would be a sweet deal once it is very confident that Magnolia LNG will be built. Currently, the market is just intolerant to any risk/will overreact to any possible negative news, including speculation.
My opinion: if an investor is 80% sure of LNG achieving financial close, the deal is good.
if you are unsure, maybe you should wait until you are more confident that LNG will be built.
While delay in financial close could send share price lower, but as long as it gets there, it's fine.
"We might not know how much we are going to walk before getting home, but we must know if we are on the way, home."
LNG Price at posting:
$1.28 Sentiment: None Disclosure: Not Held