PPP 0.00% 3.7¢ pan pacific petroleum nl

musings on the agm

  1. 1,482 Posts.
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    Certainly a couple of unhappy shareholders in attendance.

    Probably a good thing as the Directors were slow in disclosure in a few areas; especially disclosing the amounts held in US$.

    Fortune has favoured them though as the US$ strengthened and we now are looking at having A$200m~ in the bank at 30th June 2009.

    They are saying they need that sort of cash to be a serious player in the oil and gas market given the costs involved. Tend to agree with them on that.

    There is a positive double whammy here, the costs of acquisitions are falling rapidly and the PPP cash balances are rising just as quickly.

    The strategy is to buy into a play where oil is about to be produced in Aus or NZ at 50c in the $. Probability is good they can do this successfully I feel.

    Buybacks are off the table and that is fair enough. Unhappy shareholders can buy more shares to increase their % of the company at these depressed prices.

    So all in all, probably a very safe investment at 21c for the long term. They have to make a lot of blues before destroying the probable intrinsic value of the company of 40-45c. They also have a fair motivation to be careful given the massive Director shareholdings.

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