"Put them away for a year Sushi1, and try not to look at the price."
Well I guess you could have said that about five times over the last almost five years and what would have that got you?
At one time 6 cents!!!
IMO the reason most spec companies are still small and spec companies is that they fail to see the big picture:
Providing full, complete, accurate, and timely information as well as treating all shareholders as equals creates an environment that will attract long term investors to the shares and provide stability.
Investing in a spec stock I EXPECT the share to be volatile and go up and down.
What I expect to see is a company that takes care of its shareholders by providing information supports and promotes the company not one that hides every little piece of information and tries to talk down to shareholders or puts the spin on when things so bad.
The above are also key functions for the BOD of a company and a large part of their fiduciary responsibility to their shareholders.
Unfortunately in Australia despite all the neat flowery words in the Annual Reports about 'corporate responsibility' (IMO total BS as far as they are concerned) most BOD's IMO fail completely as far as treating all their shareholders fairly.
I've seen lots of companies that treat shareholders in a fair manner and provide full, complete, accurate, and timely information as well as treating all shareholders as equals widely outperform others that don't.
Those that don't underperfom the on upside and get smacked down much more when they screw up or the market falls.
Take a look at the three companies in the JV and look at their relative performance since say 1 February which was right before all the excitement started:
COMPANY 1 Feb 12 April
ADI 16 cents 28 Cents EKA 12 Cents 11.5 Cents AUT 31.5 cents 49 Cents
Some nice moves up, but ADI is way off its high as is EKA. Care to explain why EKA is the only one lower of the three with ADI currently up 75% and AUT up 55% given that other than AUT's extra wells and acreage are basically the only difference in the JV?
(Other than that I own a bunch of EKA!!!)
ADI Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
