What could happen next, page-96

Thanks Brian. Rusty is all in but you can see his frustration we have experienced with STO. He will just have to go along with Gallagher's game plan on future developments. He nailed STO's issues in OZ - regulatory, and internal - balance sheet constraints. STO have some excellent current and growth prospects. I reckon after the disappointment of WDS, where STO wanted a significant premium, Gallagher could now be looking for an overseas O&G to gobble up STO at the premium he thinks appropriate. I reckon oil majors would prefer to buy existing production with growth likely potentials than dig expensive exploration wells with no guarantees.

Gallagher is fast running out of time and patience in seeing the SP reflect potential. Is his time up? I think his contract only has a couple of years to run. Can the board wait that long and face SH frustration? It's like water off a duck's back for Gallagher. A true Scotsman unfortunately.

I agree with Rusty that both CVN and STO are drastically undervalued. He sees the value. Timing is the issue. NPV is not our friend. It's just trying to put the blowtorch to Gallagher's belly. For me from Rusty's demeanor on the show that any recent conversation with him did not go well. What is his Plan B if Nero is not prepared to wait around? Tout CVN to other oilers? Hmmm. It's the same circular program loop we have been living with for far too long.

I'll be buying more if the SP drops lower. I have the patience to see this through.