Valiant reminds me a lot of Ithaca Energy (IAE). It’s under the radar at the moment but not for much longer.
I remember when IAE was 40p range (June 09) and I was shouting its merits from the roof tops and the sp wasn’t moving one jot.
We had months of flatlining around 35p to 45p ranges and I was scratching my head as to what I had missed in my research. Then the market started to wake up to a few decent rns’s and the old father time factor started to weigh on investors minds as ops became more visible on the horizon. The simple truth is that the markets have changed post Lehman’s 08 disaster. They are less willing to price in success and often side on caution to the tune of actually discounting beyond the basic NAV.
If the company has nothing ‘material’ due such as a drill or reserves upgrade etc etc, then the market doesn’t want to know. Mr market only seems to wake up when we are weeks away from developments rather than months.
I’m an investor that likes to get in early, i’m quite happy to sit through several weeks of flatlining if it means I’ve got my shares ahead of the big news rns. No scrabbling around trying to chase it, just a nice steady build up on the investment plan planted long ago.
Valiant is a £7+ stock based on production alone never mind the ops they have planned for next year. If they have success, we could be talking £10 a share.
At 520p – even Goldie Sachs are admirers…
Goldman Sachs Upgrades Valiant Petroleum To Buy
“Friday 17th Dec 2010, 0956 GMT [Dow Jones] Goldman Sachs upgrades Valiant Petroleum (VPP.LN) to buy from neutral and target to 864p from 809p following recent underperformance and the recent operational update, which highlighted likely exploration activity in ’11.” END.