Modest 2018 earnings fc of $14.6m and a PE of 9.3 on revenue of $47.5m suggests plenty of scope for a re-rating. I reckon a lot of sellers were cleared out yesterday so I remain optimistic of SP growth in the coming weeks. SP could move very quickly given limited chart resistance below 16p. Certainly one to watch.
Agree that the update this morning was a very strong one, but very dissapointed that the s/p did not tick up considerably more today.
With that update and the prices PPC have been making in Jan - $64 approx pb - this s/p should now be considerably higher imho eg 13-14 p range.
And 'IF' WTI averages above $60 thru rest of Jan and all Feb. then I expect this to move on up very decently one way or other in coming weeks eg 15p-17p range doable by end Feb. imho
Also stocks such as these can really motor in short order off the back of range break outs or new Institutional money etc ...so ppc could go up for eg say 25% on a given DAY off the back of monemutem begetting more momentun ( aka the herd arriving )
No wonder there was a significant rise in the sp yesterday. People mustve got wind of todays ops update which has exceeded expectations. PPC is now hugely cash generative with a fully funded and exciting work programme for 2018.
True blue, you are, NtM. ;-))))
This has been undervalued for as long as I remember. So now theyre getting on top of things financially and productionwise I expect the recent rise to continue as production builds.
At under 10p I couldn't stop myself buying some more of these this morning.. That last RNS is the first time I can remember then delivering better than expected from workovers - previously not even as good as expected, but less good - and is perhaps another sign that this company is now going firmly in a positive direction..
I have high hopes for this in 2018.. indeed at under 10p to currently buy it's one of my favourite stocks for next year.. I rarely go big blue on a stock .. but as it's christmas and i'm full of spirit(s) I'm going to move on up from the small blue to the big blue here...
good news indeed TP and i'm surprised the s/p has not gone up decently off the back today.. I think this should be going back up towards 15p now.. disappointing.. but patience will hopefully be rewarded here.. I did a top up this morning too.. rude not to at these prices given current state of company and poo..
As announced on 20 October 2017, PLLG did not participate in the Open Offer as it did not want to incur an obligation to make a mandatory bid for the Company. PLLG's Open Offer Entitlement was 13,234,980 Open Offer Shares representing approximately 29.8 per cent. of the Open Offer Shares. Taking this into account, the valid acceptances received for Open Offer Shares from Qualifying Shareholders represents an oversubscription of the basic Open Offer Entitlements available for application. Qualifying Shareholders that have made valid applications will be allocated all of the Open Offer Shares that they applied for under both their basic entitlements and any excess entitlements.
valid acceptances were received in respect of, in aggregate, 33,242,163 Open Offer Shares at a price of 10 pence per Open Offer Share
The Company has agreed to issue 1,642,036 Ordinary Shares ("Service Provider Shares")
Peter Levine, will capitalise £1,680,000 of the Existing Loan Facility through the issue of 16,800,000 Loan Conversion Shares
Application has been made for 51,684,199 New Ordinary Shares (being the Open Offer Shares, the Loan Conversion Shares and the Service Provider Shares) to be admitted to trading on AIM ("Admission") and dealings are expected to commence at 8.00 a.m. on 22 November 2017.
I wasn't sure of the facts as i was responding last night i.e could you offer shares to be placed (as in the rights issue) and then not place them, whether unsubscribed or not - apols' if I've confused the issue here.
Surely as the RNS states only the shares subscribed to will be entered into the market. So no overhang or shares to be soaked up.
1.2 billion shares after the placing.
Now at 1.7
33 mill from the offer that have been applied for, 16.8 from loan conversion, and 1.6 to the service provider.
No extra 11 million shares at all. 11 million being the difference of what could have been issued and what has been issued according to the RNS.
Just working it out in my head but don't think my maths is that bad. Am I missing something?
the reason would be that they have many millions of shares and by accepting their allocation..albeit only 1 for 23 they will instantly have a profit
and they all driven by computers NOT people any more...so an instant profit is exactly that...an instant profit
for you and me (us) its so small as to not be worth taking immediately
Ive elected to take my entitlement and a few excess. PPC is improving all the time. It may take a while, and dont expect multibags next week, but if they can consolidate their position in Argentina and get Paraguay going the sp will reflect the progress, undoubtably.
Luck all, TP
Thanks for the posts. I will take as many as I can take a punt on. Totally agree with the difference on current share price but was wondering if I was being naive also. PPC have done this before and it didn't work out that great but they look to be in much better shape on a number of levels. Will go for it and keep a careful eye on it.
I'm in for some - my allocation of the basic subscription and as many as I could of the excess allocation (a lot less than I am eligible for) simply because of the instant profit at the current market price, never mind the prospects. Seems like a no-brainer to me, unless I'm being very naive.
I'm here and have been since 2011, explained simply a family member, with a high profile job within the O & G world told me it would be a good idea to find out what PL was doing, and that he'd 'started up again'. Following help by Mr Google, I learned that he he was invested in PPC, IGas and a 3rd Co' (which i can't recall now, but were bought out)
I did the usual research, would occasionally contact the company (John Hamilton was Co' Sec' at the time), went to an investor presentation and probably 3 AGM's
We seem to have received a regular positive news-flow of late, but still the occasional negative, the Chinese pumps being the most recent i.e. we've been hoping for 1200bopd for 5 years, and last month we're down to half that from PG and further delays
PL has been very vocal recently, a couple of video interviews, Malcy continues to give exposure and we've a fairly active Twitter feed, so pleased with the level of exposure, as well as the content.
The interview with Malcy, PL is pressed towards the end, and does mention EBITDA of $50m for 2018 (this is from memory, you'll have to check yourself), he's far from stupid, so wouldn't quote anything that he didn't believe was achievable, @ such an EBITDA, PPC would be significant multiples of today's 10p
Now for what I haven't liked, been negative towards the Co'
1. The 'old' BoD, what was the plan? some years ago, there was; Dave Wake-Walker, Mike Cochran, Dr. Richard Hubbard and Dr. David Jenkins - all high profile individuals, all at the same time - but why?
2 .Original set bet back in Argentina, have a look back into 2011/12, the 1200 bopd was predicted then, but never materialised
3. Paraguay drilling disaster - court case ongoing, when effective drilling may have seen us in a completely different place
4. Who are Michinoko?
5, My hopes/view in brief;
a) exceed bopd in both Arg' fields, and NOT by a few hundred, we've been quoted and expecting a few hundred and 1200bopd for 5 yrs, we need a shock, PPC needs a bolt, a story, needs combined 6500bopd and more - the circa 4200bopd that is sort of mentioned would equate to $7m/month - needs more
b) provide clear cash flow statements in the RNS's, for boepd increases. Clearly state the boepd/$ rate, thus mention gross and net-backs, get the wording right i.e. how many days boepd was the $1.5m recieved from Puesto Flores??
c) win the court case @ $10m cash payout
d) find a 'BIG' name partner for the Paraguay licences
e) 'Other' directors to purchase shares, or as PL states 'have some skin in the game', two directors only purchased 76,179 shares, not a huge amount, but fair play Rob Shepherd.
As always it's time, and we're just going to have to wait
I understand why they did this and I'm not disappointed by the price or size but I won't be taking part in the retail investor portion of offer unless this s/p bounces back up very meaningfully off 10p between now and me having to commit to the corproate action of not. (eg 12p+)
Generally, I need to see this company deliver better to targets etc before I bet any more meaningfully here.. I'm still well up on my existing bet though so all good.
And an opportunity for us to take part.
If youve got to have a placing its always good to invite existing retail shareholders to take part.
Timing is spot on to take advantage of recent sp rise, but I suppose well be pegged back towards 10 p now
some further nice movement up here yesterday and today I see.. PoO is doing nicely too which is important - granted PPC are in a sweet micro market of its own in Argentina now, but WTI north of $50 will underpin this nicely - and if PoO stays around these levels for the rest of the year 15p might well be doable here well before chrimbo..here's hoping...
Over 12 now on GOogle Finance
Seems the news re revenue stream is getting through. The importance of this aspect of the business cant be overestimated, its the bread and butter that will pay down the debt.
And then theres the possibility of a farm out of the highly prospective acreage in Paraguay which is the main interest for me.
Top up if theres a retrace.
But still not too late to get in.
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