I3E - what am I missing?

[Bhoddhisatva]

Saw this mentioned on Fintwit (FinX?) and started reading and researching.

Offers a 10.7% yield, history of generous dividends, low P/E (3.06 trailing), and proposed capital reduction and return to shareholders.

All seems good bar minor red flags (e.g., audited 2023 accounts not in yet ). Last mention on Lemonfool months ago in Hallucigenia’s round up.

No indication I can see of declining production, debt looks a little high but covered by revenue and die to fresh drilling etc.

Seems interesting to me l.. I don’t hold yet … what am I missing??

[terminal7]

What are you missing - a company whose share price has halved in 12 months for starters?

T7

[Bhoddhisatva]

That in itself is not a bad thing - one hopes to buy low and sell high of course.

But markets are often irrational and I’ve read all the RNS, chatter and can’t see a fundamental flaw …revenues seem consistent and reliable (subject to the price of oil oil varying of course). Some debt but no major red flags.

Naturally though I’m hesitant in case it’s not a mispricing but because there’s something untoward hidden which is why I’m asking if anyone else has looked and found them.

I still don’t hold any.

[clissold345]

The Oak Bloke had a quick look at I3E in Oct 2023:

https://theoakbloke.substack.com/p/i3e-i3-energy

[Bhoddhisatva]

Thanks. Not heard of oak bloke before. Interesting write up.

[BobGe]

Management concerns; past history of 'cock-ups'; considered to be 'leaky'. Wary of 'Woody'.

[Bhoddhisatva]

Woody?

[Bhoddhisatva]

Are you referring to the oak bloke?

[BobGe]

....

[Bhoddhisatva]

I’m sorry, I may be being incredibly thick but can you simply explain what you mean?
Please?

[BobGe]

It's trending up recently with the oil price but other than that, IMV, given other opportunities around, can't recommend a purchase, at least not for the longer term.

[Bhoddhisatva]

I would dream of expecting or asking for a tip or recommendation.

My one reason for asking was to see if the wisdom of this Foolish crowd might throw up something I’ve missed.

I have bought and now hold some but it’s at the larger punt size and not a full position.

[Bhoddhisatva]

Sorry that should have been “ I wouldn’t dream of …”

[BobGe]

Good fortune!