> Hot share tips
> All the big AIM fraud exposés
> 300 articles and podcasts a month
> Original investigations by our experienced team
> No ads, no click-bait, no auto-play videos
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.
I was never taken in by Rita Whittingham's supposedly game changing deal for Magnolia (MAGP) with Western Energy Development. I saw it as nothing more than a way of creating a 29.9% shareholder who would save her miserable skin at an EGM called to oust her after she had stuck her talentless family on the payroll as she mismanaged the company to death. Some were more charitable, such as the City's No 1 oil analyst Zac "the Knife" Phillips of SP Angel, but Zac has seen the light and today sticks the boot in with the shares at 4.65p (post consolidation) and thus still firmly in the minus 99% club. The Knife opines:
Magnolia Oil & Gas Drip, Drip, Drip.
When the Company announced its deal with Western Energy Development, we believed that it represented a significant step change for the Company. In the past we have questioned the availability of the full $18.5mm, but nonetheless recognised the value potential, but it seems that the issue of access to the value created by the $18.5mm has reared itself in a different guise, or is it that it is passed on as it is raised, we are not certain.
Either way, we see no difference between Magnolia of old and Magnolia in this current format if the investment is only going to be released in $500m tranches. If this is the case, it will always be that the management team can only ever focus on small interests in large fields, or large interest sin small fields, either way, we do not believe that critical mass will be achieved.
Unfortunately, unless this changes and the investment size increases, or the full amount is made available, we do not see a future for the Company, and it will be very much a case of doing what they always did, in which case, they always get what they always got, which is death by a 1,000 cuts.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |