its just the way small oil and gas exploration companies work. they raise funds and invest them in trying to increase the value of their assets unrisking them. if successful normally ends up with the company or asset being sold off and thats where they make money. try and find an aim oil & gas mino thats made profit. most have invested more than there mkt cap into there assets hoping to release the value
im in at 1.8p, so still wont sell as i know it will be back up, but with the shares coming in issue, .75 may not come but it will be close, for example based on the present mkt cap with the added shares coming into issue it will go to, 1.4p, not much of a difference
If anyone thinks that be issueing another 278m shares @0.75p the sp will drop to 0.75p, they don't really have a grasp on how things work in that sense
Of course the sp is very unlikely (never say never) to drop to 0.75p, but the dilution could have an effect, as ultimately there are another 30% or so shares in issue.
The mcap is interesting here. Currently it stands at £13m. For a company that turned over £1m to the end of 2011 and published an interim operating loss of £1.5m in just six months in its last report, I am struggling to see how that mcap at present is justified.
Sentiment is strong, but sentiment comes and goes. What I am looking for is for the company to come up with the goods, and a £1.5m six month loss is concerning
understand why people seem to think the 0.75p shares released on monday will make the SP drop to 0.75. these shares have been allocated to directors and institution who already have a great interest in the company. if they were planning on selling they would sell existing shares now at a loss and replace them with the 0.75p ones they recieve monday.
from the interim report: "The Company has attractive assets in Peru and Colombia. However, it is heavily undercapitalised and therefore cannot develop its assets without additional funds. Therefore the Directors are considering all potential options to enhance the value of the Company."
This relates to the funding that will be realised by the admission of the 278m shares on Monday, yes?
I am doing research at the moment... anyone have a succint reason why their losses went from £135k to £1.5m year on year? Not a loaded question, I am interested to establish if it was an acceptable loss (i.e. one to help drive the business forwards, in which case it could be positive) or it was just another micro-AIM company wasting money and funding their fat-cat BOD's lifestyle.
I was going to buy at 1.20p ,but they were saying its gonig down to 0.75p by monday , that is why i did not buy . i had GOO long time ago at 5.00p. but i thing i will wait till monday . if i want to buy . thank you wish you luck
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