Buying Dollars for Pennies
Today’s markets are interesting. They are so irrational that on occasion they provide opportunity even when a company reports bad news.
On February 13th I wrote a piece about a company named Pan Orient that was drilling a well in Thailand with high potential. They were going to be announcing results in about 10 days. The stock was $1.84.
They drilled; they didn’t hit commercial hydrocarbons and the stock promptly dropped as low as $1.36. What readers had forgotten was the giant stash of cash the company has on hand. As of today, the company has $1.37 in cash and by the end of March they will have $1.76 in working capital. For a stock selling at $1.50, that’s like buying dollars for pennies.
For any energy company right now, holding a boatload of cash is the next best thing to hitting a big hole.
Pan Orient will be drilling another high potential hole in June so investors get another swing at the ball.
Pan Orient is an advertiser. Do your own due diligence.
Pan Orient Energy