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I don't mind the share consolidation though. I think the reasons provided for it seemed reasonable enough. It might appeal more to new investors to have less shares in issue, better enable the share price to gain traction and have less volatility. But let's see. GLA
I agree with PFG on this one. I think the market is waiting for results in the form of an actual commercial discovery, whether that is through POW's own projects or through its spinouts. The IPO model in itself has not yet demonstrated that it will drive POW's share price and hence provide a return to its shareholders. I'm not convinced that the upcoming IPO will do so either. Furthermore, if the first commercial discovery comes through one of the IPOs, it remains to be seen whether that will benefit POW's share price, as opposed to or as well as the spinout company that makes the discovery.
The business model here is simply not gaining traction. Maybe it's too sophisticated for the average AIM punter. I do fear that adding projects like the recent announcement re Saudi is just going down the same old road of using up more precious cash for little return or recognition.
I'm not holding out much hope of getting back to my average of 2.3p (pre consolidation) any time soon, but not completely giving up on that either.
I think we just need to close above 3.8p today and that will be a great first week. Then look to close above 4.2p next week. I think there will be very strong interest in OMI throughout April and May. You would expect the share price to rise each week during that period, as OMI goes into a new and nascent uptrend. Not going to make any price predictions, but imagine if it takes off again like it did in 2020. With gold at ATH, if we get world class results out of Pepas then who knows? GLA
Positive either way in that if it’s a sell, it’s another large one out of the way. These large sells do smack of placing shares being flipped out. Can’t be that many more left to go and as I said earlier it’s better to get them out of the way now than have such large sells around when the big news starts to land here. All imo and GLA
Warrant holders have just under 2 years to exercise. Therefore, you would expect them to wait for the share price to be at much higher levels before exercising. So I don’t think there will be a massive wall at 4.3p. Or nowhere near as high as this placing overhang.
I think having a pre announcement in the form of the LOI and then the actual announcement in April could work in our favour. In that by the time we get the main announcement we will have cleared much of the overhang already and can go on a OMI style run.
Hi Karl - in my experience, whilst a lot of companies/brokers assert that placing shares are going to "placing investors" (i.e. sticky hands), the truth is often that placing shares are flipped for a small profit. Here, there has been no opportunity to flip the 2.9p shares until this week, hence why I suspect the large selling this week has been placing overhang. But it's just a theory. As for warrants, I wasn't aware that you had to keep the original share in order to exercise the warrant, and thought the two were separate. But I don't have any particular knowledge or experience as to warrants, and will bow to others who do.
Irrespective, I remain of the view that this will bounce back well in the coming days and weeks. Sub 4p is way too cheap for resuming drilling operations at Anza with 100% ownership. I took a few more today and will continue to do so whilst the opportunity presents itself. GLA
Looks like the chart is gearing up for imminent news, with a bullish consolidation unfolding (as part of wider C&H/base breakout pattern). The RNS should be the catalyst for the initial breakout. If it arrives next week, that will be very well timed because new ISA allowances kick in as well the following week. Hopefully, only a few more days of patience is needed from here and the share price will start to motor. All imo and GLA
I remain of the view that it is placing overhang that has/had to be cleared as the most likely explanation for this selling, and not just the usual profit taking from shorter term traders. There is plenty of time for the share price to rise from here and into Pepas drilling. And better to have the largest sellers out early, so that the next rise is more likely to be a sustained one, rather than (another) spike. It's a VERY strong buy case here based on the following:
1) Trading at yearly lows;
2) A small free float;
3) Very strong and rising POG for 2024;
4) Virtually guaranteed to get positive results from Pepas drilling.
5) Fresh ISA money coming in after 6 April.
So for me it's just a case of seeing where it now finds its new support/base level and accumulating at these cheaper levels whilst you can (throw the kitchen sink at it). I doubt very much this will be trading at sub 4p for any great length of time between now and commencement of drilling. All imo and GLA
A lot of placing shares are flipped for a small profit, so I suspect a lot of the selling we have seen is placing overhang. It won't be the warrants because they are not in profit yet.
There's not been any opportunity to clear the placing overhang until this week. With the volume traded, you would think that a lot of the placing overhang will have been cleared. Price just needs to set a new floor for buyers to work with and any remaining sellers to exit i.e. consolidate the gains, which it does seem to be doing. Overall, it's really hard to see this trading at anywhere near 4p by the time Pepas drilling comes round.
Anyway, let's see what tomorrow brings and GLA!
It's only a matter of short time before shares in the upper 3s get taken out, but who cares whether it's today or tomorrow, or next week, as there's plenty of time ahead of us. If BG has his way, OMI will be drilling at Pepas in less than 6 weeks' time ("early May" is what he is aiming for). You would expect this to rise incrementally each week between now and then. Already knocked on 4p today and volume is very high.
It's bounced back reasonably well from the 7s. Dare I say it, the chart is looking constructive. We just need the RNS now to act as the catalyst for a big push up. Early April is always a good time to release positive news as there will be fresh ISA money looking for a good home as well. Will we get the Energean approval first, or Loukos update? Both together would make for a bumper RNS. Not long to go now and GLA
Company continues to be saddled with debt, dilution and warrants. Nowhere near the type of financing that has been promised. Just have to hope this is part of some coherent plan, rather than just emergency reactionary financing!
I think price is just consolidating after the initial first push, setting a new floor for the next push up, which I suspect will involve taking out the remaining stock in the 3s. (Are there placing shares to clear as well?)
Take what you can in the 3s whilst they are still available. These prices will soon be history.