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.

Tom Winnifrith's share tips of the year Number 5 - sell LGO Energy at 0.265p

By Tom Winnifrith

2 January 2015 04:28

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This company is on the precipice. It needs to raise £5-6 million in emergency equity to keep going and everything is going against it. The best case for LGO Energy (LGO) is mega dilution from whatever is a confetti issuing machine, but an equally plausible outcome is insolvency.

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Comments

wildrides

1 January 2016, 11:33

Good evening Whining Froth ……. I note your latest miss information on LGO . Obviously having no break from writing over this festive season has resulted in your “burn out” worsening . The result being a further deterioration in “Whinni Maths” , “market abuse by fact twisting” and “Global shorting conspiring”
Its difficult to know where to start with your latest tiresome diatribe , but here goes :-

LGO does not need to raise £5-6 million . It needs to raise enough to raise production or meet loan repayments . Del boy Lemongas stepped down from the board in August 2014 and not last August . The output rates you specify relate to 2014 not 2015 . Mr Lemongas is not involved in the running of this business and has not been so since August 2014 . He is currently a shareholder and held 4.75% of the companies shares in DEC 2015 . The PDF of the Section 8.3 is available to view on the LGO website declaring this . The company did not mislead investors , it was simply brinkmanship in confidential negotiations and a reporting error .
The assets of the company are very good …….. On shore , easy drilling , low cost drilling with and underlying break even of $20 / barrel stated on the website ( excepting loans ) The web site declares decline rates as between 10 % and 90% depending on the well ( some re works are 30 years old ) Capex is needed to drill some new shallow horizon wells at low cost ………. but not VAST capex .
The management team are not discredited and are infact very competent oil men with vast experience ( see CV of directors on website ) They are dealing with a business that has seen the price of what it sells fall 70% in the time period you discuss . Any business with a fall in sales revenue of 70% would struggle . I back LGO to survive and recover .
I do wish you would concentrate your efforts on what you are so very good at ……… Major fraud ………. for which you undoubtably deserve a knighthood . This concerted LGO vendetta using inaccurate smears is tiresome to say the least . Do try and add some accuracy and balance to future LGO pieces you pen .

Hugs & kisses
WR

For the record I am not currently IN , but expect to take an entry if a sub .20p price opportunity occurs around my last entry at 0.18p