Well it has taken years for ADI to finally get some oil, gas, and condensate!!!
And now that ADI has finally released some information about IP rates it hasn't done much good for the share price either!! Why??
IMO the basic problem with ADI and the JV is still the same: an unwillingness or inability to provide timely, accurate information to the share market and the various JV's shareholders.
This lack of timely, accurate information creates uncertainty and that makes people stay away from ADI and the plain and simple result is the one you see in the market right now: 28.5 cents per share.
No story: no interest and a lackluster share price and that is exactly what has happened. People have many places to put their funds and they'll go where the story sounds good.
And for those of you that think I am picking on ADI, you can go and see 'you know who's' comments on another chat board expressing the same sentiment.
I don't what it is with many of these small companies in the sector, but they seem to have a common trait about the desire to keep everything 'secret' when:
1. The information is floating around already
2. It only hurts their share price and shareholders
And sometimes this desire to keep information 'secret' borders on the absurd: I once asked a company (forgot who it was) the API number for a well and was told that it was "sensitive" information and could not be disclosed.
Lastly, the effect of the EKA cap raising may be putting a little hesitation into the market and on ADI's share price as many would not want to buy before being caught in that situation and I for one find EKA's timing for the raising quite strange.....
Why raise money before and during the series of drills that are currently ongoing? What do they need the funds for right now?
ADI Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
