The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Cybertron another one who knows nothing about how algorithmic trading bots kick in with small cap penny shares on news catalysts, and then when certain parameters are reached which they are programmed to act on, they dump the shares. Or conversely, if the news catalyst is analysed as being 'negative' they immediately short and then buy back.
Why do you think we had that small bounce following the sharp drop on the open straight after the last RNS ? Nothing to do with a mass of shorts buying to close their position then ?
For now this is a trader's stock, and it's range bound. Computer bots and human short term traders work with technical analysis, and particularly with support and resistance levels.
Cybertron ; nope, it's because for years it's been a trader's share, but I don't expect that you know much about that.
So now it's the fault of the rampers, so in that case is it back down due to the derampers? Lol
NicetoMichu ; I would have to say that after years as a LTH of MATD, you are 100% correct when you say that range trading is the way to play such shares. Foolishly, for most of the time that I have held shares I have not kept a close eye on charts - I only started doing this about a year ago. That was a big mistake, because it has been range bound for years.
Over many years the share price has bounced around between pretty well defined support and resistance levels, and frankly if I had traded those levels over the last 4 years then I would be massively in profit by now.
Back last May I briefly sat on a fat profit when it hit 7 or 8p, but foolishly just did nothing. And of course at such times the rampers create lots of FOMO sentiment ; ' jump in now guys this is soaring, and it will be 20p next week ' etc. In reality there have been lots of spikes on news catalysts, but every time the share price has plummeted back down to some kind of support level.
I too agree with Investor33 post just below..
Also, for me, the upcoming elections are a major issue too .. politicians across the gambit of levels will not be inclined to effect actions to help Petro Matad ahead of elections... then a period of things bedding down after elections too.....
Also, on top, Mike Buck is half baked as a rule here too.
So unlikely I'll add to my now very small indeed holding here in the coming months.. unless this goes super low - 1.5 to 1.75 p - and I genuinely do not want that to happen for a few reasons...eg I'd like to see longtermers get a good break here for a change.... eg It's very unlikely I'd have even 5k gbp in this share - I've done similar journeys in other similar O&G plays - in Africa-and it's mostly a brutal journey with bad/awful long term shareholder outcomes - and so I'd not have a chance to make much out of betting here anyway, whatever
PS: Generally, range trading remains absolutely the way to play such shares imho.. hence why I track this BB content and always have a small - long only - bet in play whatever.. and look to and reduce to make a few k from time to time.. which over the years adds up..
Totally agree Investor.
Roxy ; I think it will turn around, but as you say, a raise is pretty well inevitable now. The question is how much will the raise be for, and at what price ?
I think there will be more clarification by MB during the AGM about what is now actually holding up the land access paperwork, so all should become a lot clearer than was apparent in the typically rather cryptic RNS release.
@Investor.
The show's not over. This will turn around if we can afford to wait another few months but a cash raise is something that is definitely on the cards. IMHO there have been a few occasions in the past when I was just waiting for the announcement that we are all in for a 5-6 million fund raise. The 64000 dollar question is how many will jump if the simply have had enough and are willing to cut their losses and quit or just leave their existing investments diluted .
Aeschylus ; there are some typos on the PM website I notice - so I don't have massive confidence in the integrity of the proof reading, whoever is responsible for it. It's not a good look.
To simply call an Isle of Man or UK incorporated company a ' parent company ' makes no sense to me - a parent company of whom exactly ? It's terminology used when talking about having a subsidiary company.
Doc83 ; at the end of the day we are both investors and hopefully it will still work out for us. It has been a very frustrating ride though. What I have learnt most from this saga since I first invested in 2019 is the wisdom of some advice that I recently read in a book about small cap biotech or exploration companies. If there's a sudden price spike on a news catalyst then take out your initial capital and keep the profit invested. That way even in the worst case possible scenario of the company going bust, you are only risking your paper profit. If I had know this at the beginning, and stuck to that advice then it would have been a far less stressful and low risk experience.
Petro Matad should clarify this basic but fundamental issue!
Investor - I'm also not necessarily saying you are wrong. Just that as far as the Mongolian people (and those damned activists) are concerned, they view us as foreign.
A lot for MB to clear up tomorrow. I see a 20-25% swing in the SP tomorrow or for the remainder of this week, based on what he says. I just don't know which way!
Doc83 ; well both can't be true. The Petrovis Group claim on their website that MATD is their subsidiary, whereas the Petro Matad website claims that the Isle of Man company is the parent company. If you are incorporated, but not part of a subsidiary, then you would not describe yourself as ' a parent company ' so that makes no sense to me. I would hazard a guess that the MATD site is incorrect.
We know that Petro Matad is incorporated in the Isle of Man - but as I said before, in order to list on the LSE it would have been necessary to create a subsidiary, though clearly it's not a UK incorporation.
To bring this into production will require more money. The issue is on what terms? An easy cheap raise with all documentation in place to drill is a different matter entirely if we are potentially to be left hanging for an indefinite period. Wonga financing would decimate the SP. I have seen it many times. I guess they are hoping for the paperwork PRIOR to raising. In the absence of concrete permissions the raise will be on discounted terms of at least 20%.
Let's all focus on the subject matter and not on personalities.
There is serious money at stake here for I would say nearly 95% of us.
What you wil get is some mischievous posts.
Just not worth getting involved.
The business side of this debate is more relevant to most
GLA
Dornod 🙄 bloody auto spell
Investor - according to our own website, Petro Matad Ltd is the parent company and is incorporated in the Isle of Man, a "British Crown Dependency", listed on the London Stock Exchange. The Mongolian people will absolutely consider us a foreign company. I mean why not just incorporate in Mongolia then? I know the answer to this...
But maybe one for MB to clear up at the AGM tomorrow?
As for this: "rather than just automatically taking it on board because it fits in with a narrative of wanting to portray MATD's immediate prospects in the worst possible light on here."
No need for anyone to do that. MATD and their RNS's do plenty for that!!!
Aeschylus, all the info is easily found,but doesn't fit protester agenda, ecowarriors, but PM communications and PR is absolutely shocking and does itself no favours. Even Matad,Dornoch, news or local govt websites omit PM's recent generosity.
Professional ; see what Aeschylus wrote. Seemingly he has done some homework into who was behind what may well be fake news, rather than just automatically taking it on board because it fits in with a narrative of wanting to portray MATD's immediate prospects in the worst possible light on here.
It begs the question then, why doesn't Petro Matad have imagery, stating "Petro Matad. A Mongolian Oil Company. Owned by Mongolia for Mongolian People" (or something similar), emblazoned across their site and equipment ??
Investor lets settle on that it is at least debatable....
And if the government decided to take its share of the pie....which side do you think they will debate?
The only new info in the article for me was the percentage 50 and 34. All other we have discussed before here. They are allowed to take control by law. Simple
Doc 83 ; it's a subsidiary - so if a UK company created a subsidiary in say France, then it would have to incorporate an entity in France, and then be subject to French subsidiary laws regarding the subsidiary and the parent company. It doesn't alter the fact that it the UK parent company which funds the French entity, runs it and funds it.
Clearly in order to list on the LSE ( the first Mongolian business to do so ) Petrovis had to create an entity over here - and for tax purposes the best option was an Isle of Man incorporation. Isle of Man company or not - the parent company of the Isle of Man subsidiary is a private Mongolian company which has sold oil and fuel in Mongolia for decades.
Aeschylus ; thanks - that's a good observation.
BP : Like I said - the Petrovis Group are keen to trumpet their subsidiary on their website. It's not surprising, as it's massive kudos for a company which has imported its oil for decades to become an oil explorer and then produce from within Mongolia. They set it up 20 years ago, and have invested heavily in the subsidiary. Why would they let it run out of funds ?
And the activists seem unaware of who MATD are - all this nonsense about being ' Canadian owned ' or whatever. Presumably this nonsense has been typical of the hysterical falsehoods which they have recently been peddling at the district committee offices and online, and which MATD have had to spend time and energy correcting - as per what was stated in the RNS.
It also has a bearing on this new law that's ben passed, which people are panicking about.
It is probably fake news. It os written by Creative Forces. When you check it out on LinkedIn it is a mongolisn company with only 5 employee who are listed as artists or marketing professionals (sales marketing) and written in an open source "news" webpage.
Lol well done to those that are talking this down, well done to the sellers for losing your money for no patience, hopefully couple of months and we are in production, time to switch off and come back later