Tom Winnifrith Bearcast 5 December - Six oil stocks heading to zero (and there are more) post OPEC

Comments

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   Barford

   5 December 2015, 13:25

   Can’t really argue with this bearcast, I think if oil stays below $45 they all got problems. Just a suggestion but you really should look at doing a regular oil blog (plus ceo interviews) separate or attached to Shareprophets via maybe audioboom, I’m sure readers will agree that would be a popular choice and get you more specific industry respect.
   Just an idea.
   All the best……

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   Barford

   5 December 2015, 13:35

   Potential names of blog?? Tomoil blog perhaps..
   You should maybe put the question to readers and get suggestions on names, let’s face it if Dave Whitby can do it with ceb for names I’m sure you can’t do any worse!
   All the best…..

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   Observer

   5 December 2015, 18:10

   My wager is on MSMN first, followed by XEL. Curiously enough, all the shares mentioned were ramped by the late, unlamented Fiona Mclellan Stewart. That fine lady was especially venomous to TW, frequently calling him a criminal. No love, you were the crook, and it is a crying shame you managed to take the easy way out and evade justice.

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   alcira16247

   6 December 2015, 02:36

   Tom

   In January 2015 of the 98 companies listed on the Aim Oil and Gas Producers sector, 38 were recognised to suffer from ‘financial frailty’.

   Coming up to a year later, one thing’s certain, that number has certainly grown and all the signs point to the situation growing from bad to worst.

   Presently, even middle tiered companies with marginally cash positive producing assets are finding it virtually impossible to raise new finance from traditional sources at anything like reasonable rates, such is the loss of investors confidence. Those companies producing minimal barrelage at barely cost or that are merely digging holes in the earth will have no alternative but issue more shares to further dilute shareholders.

   Should crude prices remain depressed for another twelve months :- how many Aim Listed Oilers are going to be around at the end of 2016 ?

   Tom, a readers poll, perhaps?

5. ---

   Barford

   6 December 2015, 03:36

   In the Bearcast you state they have acquired the STEP asset, actually if you note the RNS of 20th Novemeber it still has not gone through and won’t till 2016.
   They are awaiting gov approvals, so at the moment they are receiving no benefit of the asset (if any) and in fact have just add costs.
   Perhaps someone should have a word with the gov to fill them in.
   All the best…..

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   Bill Stickers

   6 December 2015, 06:16

   Tom, you asked recently if you were spending too much time talking about David Lenigras. My view is that by devoting so much effort at DL, you are missing far more interesting and important Stories.
   You stated a week or two back, that you would report tomorrow on what has been happening at Minera IRL. Yet, still you have said nothing. The directors at MIRL have refused to accept an EGM vote to deselect them, and are blatantly flouting the shareholders wishes.
   The actions by the MIRL board make DL look like nothing more than a wide boy dodgy dealer imo. So why are you laying off MIRL. Are their lawyers more frightening than DL’s?

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   MrMoto

   6 December 2015, 06:32

   So if you own oil stocks that have seen heavy losses, is it worth selling out at a big loss or holding on for a medium/long term recovery in oil prices?

8. ---

   Drunken Sailor

   6 December 2015, 08:45

   MRMOTO,

   My view for what it is worth is if a small – medium oil company is burning cash at current oil price then sell regardless of how big your loss would be, as it is only going to get bigger. When the oil price turns around there will be a lag before the shareprices of any of those companies turn around so you will get an opportunity to buy back much cheaper, if the company has survived that is. You should do your research again thoroughly before you do buy back as the assets may have suffered from lack of investment and no longer be worth what they once were.

   If a small – medium oil company is breaking even, whilst maintaining production levels, at current oil prices then it is probably worth holding on for the recovery, but as sentiment turns more and more against the sector even these are likely to go down and be able to be bought back cheaper when the oil price does eventually recover.

   Never be afraid to take a loss, if doing so will save you from a bigger loss. If you believe there is a longer term you can always buy in again when conditions improve – you have not married your shares and promised in sickness and health for richer and poorer etc.

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   WhataMistakerToMaker

   6 December 2015, 09:45

   Thankyou Drunken Sailor, good advice. Despite many years following the markets, I still managed to fall into the trap of:

   1) Putting far too much into 1 stock/sector
   2) Not wanting to take a financial hit, seeing it as some personal failure on my part
   3) Averaging down
   4) Taking a gamble, believing the gamble was bound to pay off!
   5) Not having a stop loss
   6) Being in a sector I didn’t fully understand
   7) Waiting for THE deal that was propel the share price and waiting, and waiting……. #Death by a thousand cuts

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    Pest Control

    10 December 2015, 19:25

    WhataMistakerToMaker, all your mistakes were made — again and again — by the idiot ADVFN poster “Loverat”, a “”“lawyer”“” whose only client was an investment fraudster who posted as “mclellan”. Please don’t feel alone.

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    Listen here Pest Control

    27 December 2015, 14:26

    Oi there PEST CONTROL, you leave that c*nt Lovesrats to us. We aree going to sue him skint.