Originally posted by Gindaldan
agree to disagree. It depends on your risk profile and the dollars you’re putting in. STOs price for quadrant pretty much values CVN at current market cap, you’re buying into exploration potential, which again is risky. Or as someone mentioned above, WPLs current resources are valued the same as a lot of these mid caps, however has the significant cash flow on top of that to fund and find new developments. CVN will most likely have to raise $100s of millions to fund developments and dilute holders, unless of course it gets lucky and can sell off an exploration asset to fund other development costs - big risk.
CVN has burnt a lot of investors, it use to be around 70-80 cents a decade ago. Nowhere near that as a result of failures and many subsequent dilutive raisings.
again, each to their own, but I wouldn’t be putting 100s of thousands into anything like CVN. But that’s me and my investment profile. While I agree most were small companies once upon a time, most companies turn into that next 10 bagger. Very few oilers around do that on the ASX, as with mining. Huge risk.
Yes, I know about its history - investing in Thailand was a huge problem; not only from the perspective of sovereign risks, but the assets (oil resources) were questionable. It was located onshore and was only producing around 5,000 barrels a day.
Fortunately, we got rid of those assets.
That's history now.
I invested my money (large amounts) shortly after they got rid of their Thai assets.
Now, CVN's focus is solely in the NWS.
And they hold about 22,000 sqkm of prime real estate (now).
The Dorado discovery was the third biggest in Western Australia and the 13th largest oil discovery in the world in 2018.
We now have $100M in the kitty. No debt.
Oh, we also have Kerry Stokes as a shareholder: he is in the top 20.
As to my investment - it has increased nearly 4 times in value since my initial investment - was 7 times at one stage last year.
I am free carry today and still in the top 40.
