Member Info for Isengard7

*back to my corner

....and if you consider inefficient capital and resource allocation. GLA I was going to talk in more detail on the dynamics and complexities surrounding Athena oil field and especially regarding its decommissioning, pro and cons and the effect on the P&L and the share price. But i could be writing forever on analyzing PMG. I will do you all favour and go back to my favour. I am sure you don't want me to bore the forum with my drivel.

SonsofGwalia , i've been in PMG for 2 years. (I am sure there are some who have been in significantly longer) Rick rule is good, but his wisdom doesn't apply to PMG. i explain in detail below. WatchLearn,Obvious reason for decline that everyone will point towards including people who follow Rick Rule, is oil price decline and as SonsofGwalia says it being an oil bear market. This is a misconception for PMG and I will prove it. "Brent oil holds highest level since July 2015" - two year high. You can see news articles relating to this with simple google search. , PMG is on a 7 year low if you check the chart. That proves you can't blame oil prices for decline of this company. there is very little correlation. Despite PMG's PDL hub. Points to a deeper issue. PMG share price continued to decline into the 30s, despite oil being close to $60, breaking a two year high. What was equally disturbing was seeing Fidelity reduce their holding whilst this was happening in the background. Fidelity is a company I have a lot of respect for and their fund managers, especially having read Anthony Bolton's book, Investing Against The Tide. Very good read.They have dozens if not hundreds of fund managers and this will only make up a tiny % of their portfolio. there is no need for to reduce the holding unless there is something materially disturbing. i am referring to PMG quietly relinquishing several of its oil licences which has led to substantial impairments cost in their P&L.(Note 2 in the accounts explains further into the impairments) There is still significant impairments charges to be released for H2 and they still sinking more in. �80m net asset value is miss leading if you consider that significant amount of those assets will eventually be impaired in the year end accounts. Scatter gun approach to licences has cost millions only to be relinquished is poor business model. impairment charges and bloated admin expenses is big issue here. If they relinquish more oil licences, what is remaining is effectively a start up Gas producing company with �2.7m revenue and loss making. To summarize capital allocation is completely wrong in this company. Where they should be focusing on gas (remember Diever west is profitable) they're actually still sinking million into oil related projects and then relinquishing them afterwards. Fidelity would not have liked this strategy, nor do I. And I reckon TC wants to continue allocating significant capital to oil licences and winning new ones. If you want to "go against the tide" you stay away from oil because everyone is on that bandwagon. Cash had depleted fast from �41m to �26.7m from June 15 to Dec 16. Current market cap �37m. so you could say market values it at around �10m if you ignore cash which seems right for this company.(with only �2.7m revenue and loss making) and if you consider inefficient capital and resource

Bmnfan, Wrong its you who needs to get real. Which broker is going to lend you shares to short PMG? Too illiquid. I doubt any broker would off you a short position. If there was a broker that offered you a short position I would have already have done it by now; you trust me when I say that. I watched this share fall from �1.20 down to to current price. Also I am sure there are still some holders remaining who held this since it was �2+ share. Companies with a substantial history of decline normally carry on declining. I thought it was because of the oil price crash. Really that was just a red herring, this share would have declined regardless of that which is proven by oil prices going up and this share price of this continuing to decline. When you people can't face it, you assume I must be shorting. My answer to that is if a broker offered it to me i would bite their hand off to open the short. But reality is that no broker will offer a short. None that I have come across anyway.

some of the older posters from 2 years ago no longer post here anymore. presumably they sold out when they realized it was going nowhere. i kept thinking long term share, stick in in draw. 2 years later and just a dog.

*It looked good about 2 years ago. share price has just steadily declined since then. would have sold earlier buy TC was said to have a good reputation. Seemed like a decent oily at that particular time. Better ones out there like Serica. If I had invested in them 2 years ago instead of this piece of sh*t., would have made a killing.

it looked about 2 years ago. looks abysmal now tho. waiting to sell it now.

Will have no effect on PMG. Let's face it; TC wouldn't know what to do with it anyway. PMG has been fluculating between 35p and 40p for a while. There is nothing to see here. The market has been more lively recently. Normally is in Autumn. I doubt this has anything to do with JOG, its just a coincidence. small increase to 39p means nothing, its minor oscillation. It was hovering that early Sept; not really a proper breakout. Its been stuck at the 35p-45p price level for several months. Its an absolute dog. Best chance shareholders have got is they return the cash.

I was in a similar situation about 2 years ago. then I decided to diversify and balance my portfolio with some less risky stocks, and those stocks have given me much better returns than my riskier ones. its a cliche of not putting all eggs in one basket. i try and make sure i have plenty of baskets.

the strategy to switch to gas is a good one but only if they can significantly increase output. Time will tell if TC can pull it off.

also for a company that only has �2m revenue and makes a net loss, it could see its share price decline further unless the management get their act together and increase output in Diever West.

sadly oil prices and OPEC meetings are irrelevant to this share, It has no bearing on it anymore. There was a time when it was closely connected with the brent price; there used to be a strong correlation. Since athena oil field was decommissioned and since several oil licences have been quietly relinquished , this has become more of a gas production start up company rather than an oil company. I think that's why oil prices has become largely irrelevant to Parkmead's share price.

shouldn't encourage anyone to average down. not everybody has a portfolio of stocks. Some people who get ramped into buying shares end up putting their all savings into it. Not something I would personally want on my conscience. For anyone who is looking at PMG, do your research before buying. It might not be as good as it looks. I have got a portfolio of stocks and some of my other shares can cancel my losses here. I don't mind taking a punt on this stock even at this stage when it looks abysmal. add to your portfolio if you like the look of it but i wouldn't go heavy on it. only put in what you can afford to lose as the old cliche goes.

mrcautious, I have heard that Cityfibre's network would highly compliment Zayo's network in the UK as they also specialise in dark fibre. Not wanting to jump the gun to say Zayo would buy CityFibre but its interesting to know that their respective networks would have good synergies.

mrcautious, Nice to see someone who knows their stuff. I have only been in Telecoms for the last 2.5 years. but its enough to know, that you know telecoms. And i agree on Viirgin being slow. Network guys where I work complain about Virgin being crap. Never heard them say anything bad about CityFibre.

ElHumphreys, regarding City fibre's max speed being 75mb/s virgin offering over 200mb/s, Firstly you pay significantly more for 200mb/s. I know from first hand experience that when buying the VOOM Fibre product from Virgin which they launched this year, for residential customers. I heard that the speeds were abysmal. we get betwewn 20 and 30mb/s. Virgin's products in some areas like Leeds is atrocious. But there is no alternative products in that area. In other words there is a gap in the market for an alternative provider. Virgin are just overrated. Leeds is a good example where BT and Virgin are seriously lacking. Virgin is not as great as you might think. I have never personally heard of any bad experiences with Cityfibre. albeit I am only familiar with their dark fibre in York and that's very reliable. Never had any negative experiences with their dark fibre and our network guys say its a good service. Can't say same for Virgin. We only use Virgin because in most parts of country there isn't much of an alternative.

i topped up today below the placing price. I don't think the synergies are priced in. I think share price will stay at these levels until its voted through at the AGM.

regarding bet on oil price. financial times posted an article. "Brent oil holds highest level since July 2015" - two year high compared to PMG on a 7 year low. doesn't quite correspond to your "current oil price" argument. the oil price excuse beginning to wear thin. or certainly its starting to show some underlying issues that are not oil price related as you mention.

The main benefits of moving to the main market to shareholders is the greater accountability, corporate governance and tighter regulations, visibility to larger institutional investors and funds and more stability in the share price usually as its less volatile. That being said there are some large caps still on AIM. Good examples are ASOS, albeit not a mining company but a market cap that is over £4.7bn. Normally companies on the main market have an extra premium built into their valuation and market capitalization. But its not the be all end all. Even if it remains on AIM its still a great company to be invested in.

Regarding TC. The word charlatan comes to mind.