With all the wild guesses as to why Union Jack’s share price is so underwhelming, it certainly doesn’t whip up any sentiment reading the non-stop battles on the bulletin boards between what is looking like a Womens Liberation Army and a band of not so merry men.
Demands on the management to update everyone every day are laughable. No company does that, no company has the time to constantly release flow rates, water cuts, why’s and wherefores of why an operation hasn’t been mobilised and what the operator is discussing, what the JV may be deciding, what biscuits are being passed around the boardroom.
As with any listed company, news is released when there is news to release, not when a few shareholders get edgy, when a few large sells go through or a number of bulletin board posters demand explanations for things they actually have no idea about.
Anyone with an ounce of common sense can see regardless of the fact news on West Newton, the Penistone Flags may be great to have, it has been stated quite clearly that these assets will be actioned/mobilised later this year. In addition, whilst shareholders await those updates, the company is progressing with great speed on their new United States assets.
One cannot in truth look negatively on the acquisition of a substantial number of value accretive mineral royalties or the purchase of a 45% share of a new well with a 75% chance of success. This what a good company should be doing, advancing their asset base to strengthen their long term success for shareholders.
Dividends are great, share buy-backs are great but they are no good if they cannot be sustained and no good if the company revenues start drying up, leaving no cash to buy assets like we are seeing.
The direction Union Jack is heading is, in my opinion, the one that will lead to the company achieving great things, why not just let them get on with it?
