Australian (ASX) Stock Market Forum

BPT - Beach Energy

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Tysonboss1 said:
I think the fact the BPT has a Billion + shares on issue is a complete "Moo Point" and means nothing when it comes to weighing the value in this company. I actually think it can be a positive, I think a companies shares have a much greater chance of rising from 80c to $1.60 than from $80 to $160.
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Surely this is also a Moo Point! Can you explain the logic (if any) between the two?

(A). I think the fact the BPT has a Billion + shares on issue is a complete "Moo Point" and means nothing when it comes to weighing the value in this company

(B). I think a companies shares have a much greater chance of rising from 80c to $1.60 than from $80 to $160.
 
skc said:
Surely this is also a Moo Point! Can you explain the logic (if any) between the two?

(A). I think the fact the BPT has a Billion + shares on issue is a complete "Moo Point" and means nothing when it comes to weighing the value in this company

(B). I think a companies shares have a much greater chance of rising from 80c to $1.60 than from $80 to $160.
Click to expand...

A, Some people time after time keep qouting the fact that BPT has a billion shares on issue as a disadvantage, I fail to see how it matters, whether a $1000 company has 2 x$500 shares or 10 x $100 shares or 10,000 x 10c shares means nothing they all value the company at exactly $1000.

B, Many people believe that as a companies share price reaches high levels like $80 there is some resistence from investors to move the price higher at the same rate as they would a much cheaper share.

Hence why some companies like tol for example conduct share splits to reduce their share price, Tol has conducted about 4 share splits every time the share heads over $20,.. they obviously don't mind increasing the total shares on issue so as to keep the price lower and hopfully trending up.
 
Yes, it works well for TOL - once the SP has gone up!

Quite a different matter though with a stagnant SP. And yes, I'm one of "those people" who reckon BPT has far too many shares on issue.

:D
 
Investopedia has an interesting article discussing the rationale for share splits to increase liquidity. It's easy enough to google for the info.

Tb1 presented one side of the argument; and offers examples such as the ASX blue chips. On the other hand and according to Investopedia, Warren Buffet's Berkshire Hathaway shares have never once been split. They are now priced at $100,000.00 ps.

It's actually a rather complex issue. In the end, investors will have to decide whether to stay with classical financial theory or go along with recent developments in behavioral finance. I suspect the former would align closer to FA while the latter, to TA.
 
Nothing to do with Beach of course but Berkshire Hathaway has announced that it is to split its Class B shares, the commonly traded class, 50 to 1. The rationale seems to be to facilitate the takeover of the Burlington Northern Santa Fe Railroad company, via a share swap.
 
Chiton-1 (Cooper basin) reserve of 0.4M boe at P10-P90 is not much to write home about, really. BPT's sp didn't even get a rise from BPT's recent announcement of the far more impressive Egyptian drilling results.

At risk of coming across as someone who's flogging a dead horse: DLS has 2B shares on issue, BPT has 1B. Alright, let's have a go at the number crunching. 0.4M boe is 400,000 x A$88.00 = $35M igv. Let's be most charitable and assume that the net profit margin to igv is 50%. This gives an NPAT of $17.5M. Multiply $17.5M by BPT's % share in Chiton-1 and then divide the result by 1B shares. Approx. 1c to the bottom line. Underwhelmingly wow...
 
Perhaps all these little bits of positive news will one day accumuate with some rising profits and cause this lumbering / slumbering companies share price to rise. I've liked a lot of the announcements recently, I don't particularly like the soveriegn risk of some of the overseas moves. The name change may be reasonable, I hope it doesn't waste too many dollars.
 
pointr said:
Perhaps all these little bits of positive news will one day accumuate ... and cause this lumbering / slumbering companies share price to rise. ... The name change may be reasonable, I hope it doesn't waste too many dollars.
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90c today... Why such a rise over the last few weeks.. I got my one cent dividends.. thanks.. :2twocents
 
Creeping up at last, around 95c today. Finally might be going somewhere.

Still got a fair bit to go before I can see a profit though :-/ :banghead:
 
$1.015!! some of my parcel are now in profit! hallelujah! Highest point in 12 months. :)
maybe I will be able to pay back my parents the money I owe this year after all
 
Not Rene said:
$1.015!! some of my parcel are now in profit! hallelujah! Highest point in 12 months. :)
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Yeah but why? Nothing has really changed with the company, if this is just a turn in market sentiment it could go back the way it came very easily...

A few reasons I can think of:

  1. Recent strength in oil and gas prices
  2. Excitement over the shale gas prospect
  3. More and better media coverage / broker reports
 
Several weeks ago BPT started to drill NS377-4 in Egypt and said they would provide no further updates as the consortium viewed this well as commercially sensitive. They will shortly spud NS377-5 so I wonder what has resulted from the drilling at NS377-4:confused: It's nice to see BPT going up, unlike a previous post we're not yet back in profit, but then again all we owe our parents is 'thanks':)
 
Just when I thought I was almost out, the bottom falls out instead.

How long must I suffer! In three days they lose 3 months of gains.

I hope they have a decent Dividend to look forward too
 
not only the bpt, a lot companies price falls, cer, ctp, bhp， rio ... does anyone know why?
and bpt quarter report just released, is there any bad news in the report?
 
Not Rene said:
Just when I thought I was almost out, the bottom falls out instead.

How long must I suffer! In three days they lose 3 months of gains.

I hope they have a decent Dividend to look forward too
Click to expand...

Guess you have to decide whether you chose bpt as an investment or a short term speculation.

if you are trying to be an investor then you shoudn't let short term market flucuations bother you.
 
Not Rene said:
Creeping up at last, around 95c today. Finally might be going somewhere.

Still got a fair bit to go before I can see a profit though :-/ :banghead:
Click to expand...

Not Rene said:
$1.015!! some of my parcel are now in profit! hallelujah! Highest point in 12 months. :)
maybe I will be able to pay back my parents the money I owe this year after all
Click to expand...

Not Rene said:
Just when I thought I was almost out, the bottom falls out instead.

How long must I suffer! In three days they lose 3 months of gains.

I hope they have a decent Dividend to look forward too
Click to expand...

I think you are watching the stock price a bit much and letting the stock price affect your mood :):banghead::(

you shouldn't judge a company by the day to day price movements of it's stock.

Think about the reasons you bought in the first place, If it was to make a quick buck then you are a speculator betting on market movements which is the same as betting on a horse race.

If you bought because you reserached the company and formed an opinion that the company was going to beable to generate good earnings over time from their assets, then you are an investor and you have to ask your self what has changed, if nothing has changed then it's a buying oportunity.

Just because yesterday the people that were selling wanted $1 for their shares and today some other guy is willing to sell out for 88c does not mean that the companies assets have stopped earning.

Think of it like this,... If you bought a farm for $100K because you knew it would produce about $25k in earnings a year for the next 10yrs and you were happy about that, then one week after you bought a real estate agent told you that because a few of your neighbors were selling you would probally only beable to sell out for $90K so you property had dropped 10%, but this 10% drop has nothing to do with the farms earning capacity so why would you let it bother you,

It would only bother you if you were a farm price speculator not an investor.
 
lukelee said:
not only the bpt, a lot companies price falls, cer, ctp, bhp， rio ... does anyone know why?
and bpt quarter report just released, is there any bad news in the report?
Click to expand...

No problems with the quarterly as far as I can tell.

The market is just following Wall Street's sizeable fall with renewed concern regarding the sustainability of world-wide recovery.
 

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