- Gas prices more than treble from 2020 lows.
- Land sales boost net cash.
- Platypus and GPA projects offer scope for positive news flow.
Shares in Parkmead (PMG:40p), a small-cap oil and gas exploration and development company, have endured a roller-coaster ride since I first suggested buying them, at 37p, in my 2018 Bargain Shares portfolio. At the time of annual results (‘Bagging a value stock hat trick’, 23 November 2020), I noted the investment risk, at 34p, was skewed to the upside. It still is.
The value case has never been in doubt: net cash of £21.1m equated to half the company’s market capitalisation of £43.8m at the end of the company’s first half (31 December 2020) and that sum has since been boosted to £24.4m (22.2p a share) following last month’s disposal of surplus land in Aberdeenshire.