Global Energy Development Share Discussion Threads

[paleje] 16/9/2014 10:49

Notwithstanding the cosy loan arrangement or previously aired suspicions about driving the price to single digits...

We still have a cashlflow albeit reducing, they are monitoring Catalina1 for anticipated natural pressure rebalancing and considering additional actions in the near future, they are currently planning the next drill and they have an improved balance sheet.

So it's not all bad, glass half full or half empty depending how you view it.

[hyperboreus] 16/9/2014 08:04

The misery continues unabated, note 6 to the accounts tells you everything you need to about GED and who is calling the shots:

'Under the terms of the Amortising Note Payable, in the possible event of a decrease in the Company's profit from operations or cash flow from operations at each interim or annual period as compared to the prior period, the interest rate shall immediately be adjusted from 12.75 per cent per annum to 13.50 per cent per annum from the date of publication of the applicable period report and through the maturity date of the Amortising Note Payable. Based upon the 2014 interim results, the Group's interest rate on the amortising note payable will increase to 13.50 per cent.'

For a totally depressing read click on the link below:

H

[hyperboreus] 15/9/2014 12:21

Interims due to be announced this Thursday (18th) according to the website. Never known the website to give exact date of results in advance in all the time I have been a shareholder, slightly ironic given the catastrophic share price performance of late :-)

[dewtrader] 04/9/2014 09:10

These fuggers continue to destroy shareholder value

[paleje] 28/8/2014 19:01

Yep I can see the attraction if criminally minded and if the risk (lockup I would think) of being caught didn't worry them. But lets face it they already have the lions share why take risk like that.

Anyway I agree its a way of looking at it even though I doubt it but.....if it were to be the case, wouldn't it mean that they think the assets are really grotesquely huge to be worth such risk and therefore wouldn't that be all the more reason for minorities not to sell. Lets face it the people most likely to send the share price down are pi's acting out of panic, then kicking themselves later when its too late.

[dlku] 28/8/2014 18:30

why disguise? cos you can have the minorities for free more or less. delist

[paleje] 28/8/2014 16:24

Timing as ever RCT2:)

dlku, it would be highly risky to disguise results for the purpose of misleading shareholders, why take such risk when there aren't that many in private hands and we're diluted anyway by way of the farm-ins. I think they just made the wrong call with this drill, which may yet come good, and they'll use what they've learned to make a better call next time.

Sentiment will stay bad till they announce some decent news though, hopefully next month.

[rcturner2] 28/8/2014 15:01

paleje, exactly resource plays like Polo and Cairn I would never
look at ST since he churns numbers and then talks to management
about growth. I don't understand why he touches resource
stocks.

Recently Trifast and Tristel are two very good tips of his that
have been excellent and both fit the Fisher model (been very good
for me). An example of a failure such as Netplay may well come good
in the end but is not the type of stock that interests me. Thalassa
it depends when you bought I suppose. Fisher always said on a stock
selection "judge me after 3 years".

[dlku] 28/8/2014 14:03

yanks shall delist, they will steal this business from investors -
they already have a related party doing the drill - how do we know
they are dealing in best interests and not just putting false news
out to send this to 5p and then delist

[paleje] 28/8/2014 13:57

RCT2, remember ST also tipping Polo, Cairn, both heavily down....as
are very many of his other tips including so called growth
situations, he's had a bad 6 months but not as bad as some of his
disciples:)

GED he must have liked for the ongoing production as well as the
near term potential as he saw it. No reason to think the near term
(relatively) won't happen and they've got cash in the bank with
more to come as part of the farm-in and 5 more free carry drills
ahead. Sentiment is driving this, not logic imo.

[dlku] 28/8/2014 13:53

Dusty bin time for this and Simon Thompson

[rcturner2] 28/8/2014 13:37

I follow ST quite carefully and the thing that surprises me is
that
ST would tip a stock like this, which is essentially an asset
play,
when ST seems to focus on earnings growth in small companies
(he
has mentioned Fisher as one of his influences). I tend to
filter
out any ST tip that does not fit the Fisher model.

[bench2] 27/8/2014 22:49

Hope deferred , but share price touched the 10yr low today at 42p . Best to
watch the volume for a clue to see if sellers are spent .

[paleje] 27/8/2014 10:58

NORTHLAND UK VIEW: A mixed update. It is encouraging that the
Simiti is naturally fractured as this may alleviate the need to
artificially fracture future wells, saving significant costs.
Whilst Global is free-carried on the current programme, a lower
capex profile would bode well for the wider
development/monetisation of the project thereafter. It is also
encouraging that this well is not written-off. However, it is
frustrating that results will take some time to emerge. That said,
our current forecasts do not factor in production from Catalina-1.
The news also demonstrates the benefit of Global’s farm outs
that allow six opportunities at assessing low resource risk, though
high technical risk, projects. Global’s agreement with
Everest Hill Energy will see it carried on up to three wells on the
Bolivar Association Contract and a further three on the Bocachico
Association Contract, comprising four workovers of existing wells
and the drilling of two new wells. With a valuation undemanding on
the basis of producing reserves, a successful evaluation of any of
these targets, could provide a significant catalyst. Upcoming
interim results could also provide some comfort on the robust cash
generating producing assets. We continue to see excellent value in
the shares and reiterate our BUY rating and 181p price target.

http://www.proactiveinvestors.co.uk/columns/northland-capital-partners-view-on-the-city/16840/northland-capital-partners-view-on-the-city-paragon-diamonds-and-global-energy-development-16840.html

[salpara111] 27/8/2014 09:52

Somehow it seemed almost inevitable.
So much for the "world Class asset"
Difficult to know what to do here.
It will be months before they get another drill result but they
still have their other producing asset however it is clear that it
is running out so time is not on their side.
The share price is so bombed out that I am really reluctant to sell but
given previous experience in this situation the best course of
action is usually to cut your losses.

[rcturner2] 26/8/2014 14:48

OK, thanks guys, so he has changed it to a hold rather than a buy.

[paleje] 26/8/2014 14:35

ST did say hold and wait for more news which they hoped to have during August, not promised. He also said it was a very frustrating share, can't argue there.

But this is the first of 6 free carry drills, it isn't costing us anything except possibly a bit of lost production, but we're still on Equity Developments forecast 5.4p eps for the current year regardless of the drill outcome......and in respect of the drill itself they have some interesting observations to make. For anyone who hasn't read their article:-