Australian (ASX) Stock Market Forum

BPT - Beach Energy

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As expected found very good support at $1.30ish. Back through 200d ma. All good for long term Beach punters. :)
 
Hi guys

Ive had this stock for around 5 years now and it has been a great investment...but now I have a burning question :)

With the share price hovering below 1.39 how will this new share issue work? I know its underwritten but there wont be any incentive to purchase if the prices remains here, or below so does it require a reviewed price offering or am I missing something?

Many thx.

JR
 
Most likely the price will rise above the SPPlan price as it gets closer to Basker Manta project coning online in the next month.
 
Unusual volume early on BPT today. Can't be the slight oil recovery. Interesting.
 
Hi All

Im still unsure as to validity of this recent option issue, the shares are around 1.38 today and the deadline for purchase at $1.39 is only a couples of weeks away.

Doesnt this put the offer at risk as investors wont be incentivised to purchase.

Id like to support the company and have a reasonable amount tied up in it buying these doesnt add up.

Any comments pls.

JR
 
I am the same. I understand some documentation will be sent on the 17/10 to shareholders
 
Its not panic, but there will be a price for underwritting and the share issue doesnt add up when the issue price doesnt provide a discount to share price. An investor may as well buy at market below the issue price ($1.39) than participate in the share float..so they wont do either. If the share price goes up in the next week the picture changes, but you would have to say the shareholder perception of the deal is poor as the share price has dropped since the annoucement, so the likelyhood of that is low unless the directors get all their mates to prop the market up (just joking).

Im confident that they have made judgment that the Cooper fields from Delhi will pay dividends but this deal has had changed the company from being extremely cash strong to getting into debt and this is an important aspect in repayment.

Comments/info anyone?
 
A few things to consider. The share price looks like its on the way up to $1.50 in the next 2 weeks. Basker Manta starting production in the next month adding over 200 million in revenue per year to BPT. This puts BPT in a very strong financial position. The oil price is rising over the short term. Oversees stock markets hitting record highs. BPT's share price is at $1.40 now with upward momentum. Major NZ driling has begun. BPT is now in top 200 ASX listing which will help with the upward momentum. BPT is a much larger compnay than AWE & ROC which have much higher share prices. In all likelyhood BPT's share price will double over the next year. Do i need to say any more?
 
Oh and on top of all of that BPT plans on trebling their production not including thier Dheli assets over the next 3 years. What does all of these facts mean? It means that the risk factor for this company is reduced substantially and that the currect share price has a very strong floor in place for a strong upward trend. :)

Good luck to all that have these shares.
 
After holding for 5 years I sold out of all my shares in Beach last week. The market hasnt taken to this new deal, and although underwritten raising funds @1.39 is prone to undersubscription. Also the 7 for 2 just splits the same pie into more bits so devalues your interest. An increase of exec remuneration of 500% with profit increase only 100% also wasnt a good look and tech analysis is risky short term.

May rebuy when things settle down, but for now Im out.
 
I'm still in but watching it very close. I really can't make a decision on this....the chart says 'breakdown ahead', but the future fundy stuff says HOLD ME.

Like to hear some more on this from anyone.
 
Good on you i say as you have made alot of money out of it already. I don't think that it's a case that the market hasn't taken to BPT of late. I think it's much more the case that the deal isn't totally complete as yet so it's more of a wait and see approach at the moment. I think that the end result will be very much worth the wait. :)
 
Hi Crazy...Its quite hard to get good unbiased info, and forums like this are also prone to personal motivations and limited by poster knowledge.

The only real way is the long task of reading all the docs and making an independent decision based on your own risk tolerance and experiences...or you could pay someone else who isnt risking their own money :).

Good luck with your investments and decision..its actually quite alot of fun as well as being a headache!
 

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