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Doc Holiday's share tip of the year Number 1 - buy New World Oil & Gas

By Doc Holiday | Sunday 27 December 2015


Disclosure: I own shares in one or more of the stocks mentioned. 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.


After an annus horribilis for New World Oil (NEW) in 2015 which (to put it mildly) has been engulfed by shady business, things now appear to be looking up for shareholders as Adam Reynolds '' front man supremo '' and corporate sanitiser Nick Lee join the board to help clean up and vend in a more attractive proposition.

After announcing the white knights arrival to the board the shares soared from 0.05p towards 0.13p and whilst Tom Winnifrith flashed his sheriffs badge at the valuation (fair cop) I actually disagree somewhat as currently likable shells run by highly credible and motivated boards are currently in vogue.

Thus decent clean shells with a cash pile are somewhat catching the attention of investors across AIM with many examples of significant premiums being paid for far worse models (such as Concha's £100 million ludicrous valuation during 2015) 

Adam's rise to the top is playing out right in front of our eyes as his Midas touch helped furnish Optibiotix (OPTI) investors with a real Christmas treat and whilst New World Oil is currently resource focused I really don't see that theme being continued particularly not in this train wreck resource market.
 
So whats to come from NEW? well its Bio tech / med tech or possibly Fin tech with a real focus on value creation which is pretty much the polar opposite to the old regime, it's hard to know exactly where it'll come from right now as many private investors speculate heavily but I tend to focus on the £2.5-£3 million cash pile against the current market capitalisation of £3 million coupled to a pragmatic board with focus and vision.
 
The current board has already seen director loans repaid to the business as the new team continues to recover additional funds lost by a poor ex-management team. 2016 should be an interesting year both for New World Oil shareholders and also Adam Reynolds & co. I wouldn't throw all your eggs into one basket on AIM but at more or less it's cash position then it's worth a flutter.  The shares are a buy.


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