And here's another extract from the early hours of 3/7 where Holy is talking about the ESG share price having been kept down ahead of the deal in which he concludes that HGO would not have sold without some assurances about upside in the near-term. I agree with his logics:
"Why do I raise this issue?
Because Eastern Star appears to have been treated the same way. It was traveling along well in May, going above 90 cents, till it suddenly hit a big brick wall and went backwards.
Just about the time, I would presume, when HGO and Santos were negotiating their deal. It would appear on the surface that it would have been most beneficial for Santos if Eastern Star's price was kept down during negotiations for HGO's shares and Gasstars 35%.
It must be that Hillgrove is aware that Eastern Star is substantially undervalued at $1, but HGO needs to sell, and that would explain why the price that Hill Grove sold for had an escalation clause added on.
So, what does all this this mean? I interpret this to mean that Eastern Star's price has been artificially held down these last six weeks, and that Santos has promised HGO a sweetener to sell out at the price of $1
And it means that HGO fully expect some sort of price war to be fortcoming in the next 18 months. For, I am sure, they must have had offers from all parties interested in ESG, and they will be in a very good position to guage the state of play.
So, if ESG had been let to run its merry way, it should have been well above a dollar when this move from Santos came about. And if Santos had approached HGO with an ESG price above a dollar, I am sure that they would have had to pay out at least $1.50.
so I would expect the market to awaken to this fact pretty soon, and I would expect ESG to be at $1.50 or more in the vey near future.
And we expect a battle royal to be brewing by and by.
I suppose these are just the collective thoughts of the family.
Blessing of the Lord MLA"
H
ESG Price at posting:
82.0¢ Sentiment: LT Buy Disclosure: Held
