Cmon guys, bit of patience is required. Corporate transactions...

Cmon guys, bit of patience is required. Corporate transactions take time. It’s all well and good to think it’s between two entities when in fact it isn’t. Each party involved has its own legal parties who will become involved in a progressed discussion situation, funding parameters need to be satisfied by any acquirer of the assets OR buyer of the gas itself. Board members need to be appeased, shareholders need to be acknowledged. These are some examples that come to mind. It’s not as simple as many of you make it out. I have been involved in a couple of corporate transactions, and I work in small business, these transactions can take years. You might be reading this and be thinking I’m an idiot, but it’s true. If the companies I have dealt with in these types of transactions were public and not private, shareholders would be furious as from the date of discussions commencing, typically nothing material may come to fruition 15 months later.

This reminds me of the WGO / West Erregulla bidding war in late 2022 where people were attacking the MD of WGO (who owned around 1/5 of the company from memory - one can easily confirm this) and was pushing for value realisation contrary to what shareholders thought. Shareholders questioned whether he could get a deal done and many accused him of not having the WGO shareholders interests’ front of mind. After increasing 2P reserves at WE in mid-late 2022, the rest was history as the bidding war between Beach, Strike, Rinehart commenced.

Guys, a lot of patience is required in investing, particularly in smaller companies. Peter Lynch makes the point that investors on average typically reap a return on their investment in their 3rd/4th year of holding a given stock. I’m in my 2nd year and from where I sit, with all the research I have done, I am highly confident we will see a high 20s SP which could come via numerous catalysts. Patience my friends, patience.