By Tom Winnifrith | Tuesday 24 November 2015
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Malcolm Graham Wood is paid large sums of money by oil companies to write reports on their shares which - for obvious reasons - don't tend to be bearish. He does not declare if a company whose shares he is tipping has paid him to do so or not. As such his research should ALL be ignored. Commentators must be transparent in why they are writing. If they are not they are discredited and should be drummed out of town. As such I ignore this pompous lard-bucket.
I see that Mr Graham Wood is on the lamentable share ramping-fest that is iii today tipping Gulf Keystone (GKP). I do not know if he is on Gulf’s payroll or not. If he is he should say so. If he is not then I imagine he is touting for business. The hooker does not tell the John that he is ugly as she sidles up looking to turn a trick.
We still do not know if the Kurds have made a November net $12 million payment to Gulf. October and September payments arrived on the 15th of the month. If the Kurds have not ponied up that is very grim news indeed for Gulf and the shares will collapse.
If the Kurds have ponied up then Gulf won’t default on its bonds for another ten or eleven months. But default it will and it certainly cannot repay. That is why the bonds now yield 17% and 21% respectively. And that tells you that the equity is probably worthless. This could well be a zero. The shares should be sub 10p.
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