Monday 20 August 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
I can understand why longer term investors in Parkmead Group (PMG) may be somewhat unimpressed with the performance of the share price recently, but the company itself is continuing to make good progress. I hold shares in the company myself, and whilst the share price has generally been trading in the mid-30p to low-40p range, in spite of the strength that the oil price has been showing in recent months, I’m happy to remain invested and see how things unfold in the coming months and years.
Often the valuation of resource companies on the AIM market seems to revolve more around how popular they are amongst private investors, than having much to do with the progress that they have made, and how well they are likely to do in the future.
Usually it takes far longer for companies to move forwards operationally than the majority of investors expect, and it is at times when most people have become bored and moved on elsewhere, that opportunities can present themselves.
Parkmead Group (PMG) is not only one of the better bullish prospects around in terms of the smaller companies zone, in terms of its daily chart we are also being provided with several lessons as to how the kind of extended rally being witnessed here actually gets off the ground.
On 23rd May it was announced that Parkmead (PMG) was to buy Lochard Energy (LHD) in an all share deal worth c 4.9p per share. 41% of Lochard shareholders have agreed unconditionally but some – including the former CEO are trying to block the deal.
Clearly, it does not require too much imagination to work out that after finding support at 12p or just below over the past couple of years, shares of Parkmead may finally go up and stay up. But the problem is trying to work out what will be different this time in terms of the stock being able to find lasting support at the bottom of the range on this occasion versus the other eleven?
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