Bacci, if you want Dividend paying stocks, there are plenty of those on the market. I doubt this was ever a dividend paying stock. Like many in the energy sector, its aim was to grow its portfolio of assets, and invest in new wells. To me they have been a bit unlucky with the higher risk wells they have attempted in partnership with others. Had one or two of those come off, things might have been different.
Were they to sell the assets this month for a good price, one would imagine the shareholders would get a return, whether that be a return of capital, or a premium to the share price via a re-rating based on the sale price. Or perhpas the company itself is taken over. Who knows, we will have to wait a few more weeks perhaps.
Either way, it strikes me the company is under-valued if you look at its assets, and the current sale process should (fingers crossed) realise that under-valuation. Were that process not underway, I would probably not hold.
AMU Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
