Some people need to learn the difference between PRICE and VALUE.
Once it is realised that equities are often grossly mispriced, sometimes by an order of magnitude, you have a framework for making money as a value investor.
Whilst people misunderstand the difference, and keep pointing at the current price, and demand to know "Well, if if ESG is worth X, why is it valued at Y?", they will never get very far investing on fundamentals.
Mangels obviously know the difference between the PRICE of a horse and the VALUE of a horse, and how very often they are not the same thing.
So, why then should share prices in the short term match the intrinsic value?
They don't. And therein lies the opportunity, if your analysis of the intrinsic value is correct.
I don't make predictions about PRICE. I makes statements, backed up by evidence, about what I believe ESG is worth in terms of VALUE.
I also believe ESG will be the subject of corporate action this half. But, my risk reversal is this - their gas is incredibly cheap relative to their price. So if ESG go it alone, that is fine too. They have a world class resource, and expanding markets.
I think some people also need to stop playing the blame game, and be responsible for their own investment decisions. I will be responsible for my decisions, and if I am correct about ESG, I will make a great deal of money. And if I am wrong, I will lose money. I will wear that.
But I don't blame others for my decisions. And I don't apologies for my views on ESG.
Y
ESG Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
