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Andrew Monk of VSA reckons that LGO Energy is a buy

By Tom Winnifrith | Monday 13 February 2017


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.


It takes two to tango or, rather, two to make a market. I am not exactly a great fan of LGO Energy (LGO) having called this as a teddy to perfection. But Andrew Monk of VSA reckons it is time to bottom fish and since I believe in free speech I am happy to publish his reasoning from his morning email.

Monkey wants you to note that VSA is a connected party so take this with a pinch of salt. I should cocoa. Over to Andrew: 

Now sometimes stocks go wrong and the market gets really negative and it gets itself so negative that it can miss the wood from the tree’s …………..and so I am going to stock my neck out, and also declare my hand that we may start giving advice, and say that I think LGO has been caught in this bear trap………..Yup it’s had some issues in the past and it’s not necessarily perfect yet but it has actually worked its way out of a pretty nasty hole and actually Neil Ritson is a good guy and CEO just doing his job

The fact is they have basically resolved their debt issues unlike many other E&P companies out there, they have production which is what everyone wants , they have a very large Oil in Place number and its genuine – don’t forget Trinidad is basically just the end of Venezuela and it’s a well known Oil area.

Now that the oil price has recovered there is no reason why they can’t go back to where they were in 2014 and start more development of  the Goudron field  which will give them even more production at frankly minimal risk – surely that is what you all want to invest in ? Production that can be ramped up ?

So you need to see the Company and I will bring them round to meet with you as there is a very interesting and high return opportunity here as the gearing on the way up will be the same as on the way down 

I’ll tell you another thing too – it has great liquidity- over half a billion shares traded on Friday !! And they have a little operational update out today just saying nothings wrong


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