re: Ann: ZSP: SandP Indices Announces Septemb...
raeban,
What upgrade are you talking about ? As TCG pointed out the inclusion in the ASX 300 is purely a reflection of SSNs market cap. The market cap is calculated based on our share price multipled by the number of shares on issue. Our includion is therefore a result of our share price going up and our total value being greater than some other companies which haven't done so well.
If our share price goes down as a result of a couple of dry wells we will be dropped out of the index in the next quarterly sweep. Don't be under the illusion that inclusion is a result of some clever dude somewhere saying "That SSN looks the goods. Lets get it in our index and claim it as a hot tip". Simply not the case.
We have not been upgraded, rerated or any such thing. Being in the index doesn't change the fundamentals of the company which ultimately underpin the shareprice. If we have dry wells do you really thing holders are going to sit there "secure" in the knowledge that SSN is in an index ?
As for comments like "The production of oil is an added bonus", seriously dude where do you come up with stuff like that. SSN is an oil exploration company. Our future is 100% linked to expected future oil production and the price that we can sell said commodity.
This is not a namby pamby pump and dump stock priced according to hype. Its a stock which is building solid foundations based on oil production. Its prospects look execellent but if for one moment the future oil prospects didn't look so good the inclusion in every index on the planet ain't going to protect it.
SSNs share price will go up as Terry and the team manage to demonstrate the value of the new fields. Sure we might have a few more potential buyers in the queue come the end of the month but having more potential buyers doesn't mean its not speculative.
SSN Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
