When I look around the market and see the movement of share prices based on activities undertaken by these companies, I always wonder why certain companies react strongly and others don't.
I like to look at relative performance based on actual events rather than seeing what some other company is doing and using that to translate it into what ADI or another company might do.
I've commented on ELK and GDN in the ELK thread and now let's take a look at ADI and SSN.
First of all SSN actually has income from oil and gas operations, but operates at a loss. ADI has squat as far as oil and gas income is concerned and also operates at a loss.
Shares outstanding: SSN over 1.2 BILLION; ADI about 150 million. SSN also has a bunch of ASX traded options; ADI -none, but 6 million cheapo 23 cent options for insiders.
SSN also has huge accumulated operating losses - doubt that they will ever pay income tax for a long, long time, if ever!!!
SSN has a bunch of debt, but ADI about $5 million or so in cash.
So what about share price movements?
SSN announces news on the latest well in which it has about a 30% interest or about 300 boe/d and the share price zooms up by 23% increasing the market cap to around $41 million plus....not a bad reaction for a small amount of production spread over a billion shares....
ADI, it announces monthly production rates on a couple of wells that are over 10 million scef/d made up of whatever and the share price wallows..........
Go figure: the market likes SSN and could care less about ADI as shown by the price movements and the number of shares traded.
SSN gets the pop and ADI shareholders are subject to more waiting.
ADI Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
