Elk Petroleum announced today that it was looking to sell its Wyoming oil and gas assets, expected to generate $10-20 million a year after 2016, because this...
John Robertson
PortfolioDirect
Elk Petroleum announced today that it was looking to sell its Wyoming oil and gas assets, expected to generate $10-20 million a year after 2016, because this value was not being reflected in the company's $15 million market cap. Coincidentally, PortfolioDirect contains a report this week on Elk Petroleum pointing out why investors may struggle to get the benefit from these developments before 2017. The report inadvertently provides the rationale for the Elk board to find alternative ways in which to realise the value trapped in their business. Elk is by no means the only development stage company stuck in this value trap. The question now is how much more industry investors are prepared to pay than an Australian portfolio investor and what message that sends about how listed stocks with multi year development timetables need to create value.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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