Originally posted by Cosmoterios
Gindaldan,
I would disagree with you on this.
At some point, the large companies you listed were small. They grew over time.
Funding is not the problem if the Asset is in the right location (the oil discovery is only 160km off Port Hedland). As an example, CVN raised $50M last week in just two days and the raising was not underwritten. The raise was overwhelmingly over-subscribed, such that when it re-opened for trading, the share price went up instead of down.
As to the Oil assets - Quadrant and CVN found their oil in shallow waters; in around 75 metres, and still has plenty of prospects to go after. On two leases, CVN hold 20% interest and on the other two, it holds 30% interest - that is where the prospect for 600M barrels is located at.
Everyone is entitled to their opinion and invest in the ways they want. I am happy with mine.
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.
