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Re: Have investor lost credibility in Mart ResourcesYour question should have been? have investors lost CONFIDENCE in MART and Wade? The question implies that you have. In all fairness the question should have been ?Have investors lost confidence in the ability of the oil and gas industry to deliver significant returns in the short term? Given the drop in benchmark crude prices apparently resulting from over-capacity and sagging demand projections - and geopolitical turmoil, - the answer is a mitigated yes. If I compare MART’s share price performance to the remainder of my investments in domestic (Canadian) oil and gas, we are doing OK, this speaks to the strong fundamentals underpinning the company. And yes, investors are buying into MART, some assuredly savvy enough to parley volatility and capitulation of late into handsome profits. The actions of the board indicate to me a responsible approach to laying the foundations of a long-term sustainable growth horizon. These are not the actions of a greedy board and CEO artificially pumping the stock on the back of investors with unrealistic dividend payouts or market maker-driven pie-in-the sky NRs. Instead our money, including Wade’s, is being brought to bear into capital intensive tangible investments, that given time, should provide a nice return. With regards to OML18, I am particularly pleased with our CEO’s ability to have forged a strong partnership within the Erotron consortium, this sentiment underpinned by Midwestern, owned by Notore, one of Nigeria’s leading industrial conglomerates. This progressive company is headed by one of Nigeria’s most respected and successful Nigerian industrialists, both domestically and internationally. Notore brings to the table the kind of local content that many other companies operating in Nigeria can only dream of. I have reason to believe that Notore is also engaged in the acquisition of shares within MART, - perhaps “anonymous”? In any event, a capable and successful Nigerian corporation has chosen to partner with MART, and this speaks to our company’s and CEO's perceived strength and ability to deliver. With regards to the frustrating delays in delivering oil through our pipeline, I am confident that the problem lies with final approval of the project ‘as built’ necessitating tedious approvals from layers of technocratic bureaucracy - associated for example, to technical rubber stamp approvals of test results etc.. As a member of OPEC hampered by export quotas and the likes, one can imagine there are a number of reporting procedures to deal with within the various ministries. However, Nigeria is in the business of selling oil and is desperate to increase oil revenues, so approvals will not be unduly delayed albeit this needs to take its convoluted course. In MHO, I am expecting the process to take more than a couple weeks, but I hope I am wrong. I live in a reasonably sophisticated but nevertheless developing nation, so for me these kinds of delays are customary and understood. Meanwhile we are still producing and delivering, albeit not optimally, oil to fund a small divi and significant investments in drilling, pipeline infrastructure and acquisition of new a new lease with associated infrastructure and proven reserves that beg to be revisited with enhancement technology – something that apparently we are very good at. In short, to answer your question, and mindful of the current context of uncertain oil prices, yachtbeaver has tremendous confidence in MART and our CEO. I see MART as a long-term investment that will in due course deliver strong dividends accompanied by a reasonable share price growth. I hope I am not wrongheaded in hoping that as we wait for good news, that the share price will revisit something near recent lows so that I can finish my plan to double down on my already overweight position - a buying opportunity I missed by just one penny a few weeks ago. . |
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Msg # | Subject | Author | Recs | Date Posted |
13154 | Re: Have investor lost credibility in Mart Resources | samsung | 0 | 10/24/2014 5:53:14 PM |
13172 | Re: Have investor lost credibility in Mart Resources-Yachtbeaver | Rxdoc2 | 4 | 10/25/2014 8:47:20 AM |