Originally Posted by mistaTea 950715
Yep, and the SP will never reflect 'intrinsic value' even if they lift earnings, oil and gas prices increase etc because the stock is not liquid. Investors are only prepared to pay fair value (or even a premium) for liquidity. If you bought a meaningful amount of NZO shares you might not be able to sell them in the future for a fair price - or it would take you ages anyway!
Thanks for your input mistatea .
Agree the sp will never reflect the intrinsic value we both know exists .
My view is that there has been a massive increase in the value of this company since you understandably sold out following Ironbark.
there are no more high risk/high risk drills.
Amadeus was bought into at the right time and is a great investment .
Australia has lots of coal seam gas ,pipelines and lpg plants plus favourable politics.
NZo is in a good place now .
Free Cash Flow is much increased.
Natural gas price was 250 12 months ago and today is 609 so I expect fcf flow will more than double this year .
The negatives you point out where present when you may have bought in .
they remain but I feel are mitigated by recent developments.
If ogog want to be able to use the fcf to best help their group then clearly they need to buy out the minority shareholders-this has to be at a fair and reasonable price so the sooner they do this the cheaper it will be.
If they do not takeover then both ogog and minority shareholders will get good dividends .
Hence I will be holding for as long as this takes