Thursday 17 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


Magnolia Petroleum Part 1:-Back Zac "The Knife" Phillips and Sack Rita Whittingham

By Tom Winnifrith, The Sheriff of AIM | Sunday 18 June 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.


And so the battle lines are drawn at Magnolia Petroleum (MAGP), the dash guzzling worthless AIM POS founded by Gavin Burnell of Globo infamy. On the one hand there is an overpaid incumbent board led by less than lovely Rita Whittingham and backed by an overpaid army of crony capitalist advisers. On the other side are Even Ainsworth from Nostra Terra (NTOG) and Zac "The Knife" Philips, the City's top oil analyst. Magnolia has accepted that a GM request to outs less than lovely Rita and appoint Ainsorth and The Knife is valid. So what is the voting maths?

Those requisitioning the GM own 11% of the shares but brokers who have pledged support own another 10%+. The board of directors own just 5%. The remaining shares are owned by thousands of mug punters who have been suckered by Rita into backing ever more dilutive placings over the years. Collectively they own three quarters of the company, individually nearly all the holdings are so worthless that it is unlikely that many of them will vote.

And if they do vote will they back Rita? Having lost nearly all their money while Rita trousered it in that seems exceedingly unlikely. In light of the revelations that will follow later today the chances of Rita getting any support at all from long suffering shareholders will soon go from Bob Hope to No Hope. In short Rita is toast.

I happen to think that Magnolia is worthless whoever is in charge but Zac The Knife has a reputation to lose and will be ruthless in cutting corporate waste, so offers a glimmer of hope. Rita offers guaranteed failure. I urge all shareholders to vote accordingly.


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