Club Mulgoa

Friday, August 17, 2012

STO and BPT

http://www.theaustralian.com.au/business/mining-energy/new-industry-born-with-santos-shale/story-e6frg9df-1226452924252

You might not be able to read the link unless you are a subscriber to The Australian.  Why STO is so low in price especially recently baffles me.  It has been a takeover subject for a long time, it produces products that people want (oil and gas) and it has been known for a long time that it has a lot of acreage in Cooper Basin where a lot of gas exists... and it has been successful at hunting it.  And now actually producing it.

Why does it take articles from newspaper, and a relatively good profit (ie "above expectation") before the market takes note?  Because I don't have spare cash to throw around, I have been very reluctant to top up STO because its share price kept falling.  You would also think that by now, one of the big boys would have snapped it up for peanuts.

It is more thrilling betting on small explorers with good grounds and prospect.  So most of my recent investments have been on "funny" stocks.  Just to name a few PVD, PCL, ABU, WHN, SXY, SIH... but the volume of trade has diminished as the market sentiment is very negative.  Since I can never pick the trough, I just continue buying but in lower frequency.

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