By Tom Winnifrith | Wednesday 13 April 2016
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.
The Morons who have ignored my advice to sell Gulf Keystone (GKP) all the way down from 180p to 6.6p today have occassionally argued that I cannot be right because fund managers are long and strong and they know more than a pizza delivery boy/alcoholic etc etc etc. Today M&G has sold its 5% stake and now owns no shares at all.
Last time M&G and I crossed swords was over Quindell (QPP) where the fund manager bought into the fraud I exposed. Today it takes a 97% loss on the chin by ignoring me on Gulf. Fund managers are human they - like me and everyone on this planet bar Fastjet "expert" Duck & Dive - gets its wrong now and again. It strikes me that M&G, since it employs poltroons like Tom Dobell, gets it wrong in a spectacular manner a bit more than it should.
So now Gulf is almost entirely owned by private investors, bulletin board morons. In a sense this does not matter since the equity is essentially worthless. In getting out even at these prices M&G is at least a bit smarter than your average bulletin board moron in that it recognises that the shares are just not worth holding, something I explained in bearcast yesterday HERE.
The bottom line is that Gulf is either heading for 0p ( the Afren scenario) or a 1p debt for equity swap scenario. Eiher way, at 6.6p the shares remain a stonking sell.
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