RE: SHORT SQUEEZE27 May 2023 07:59
Well it didn’t quite get to the dizzy heights of the 27p yesterday, but put that down to some gap filling and it being a Friday. Now being mocked at not holding for 50p, well in hindsight you did the right thing to sell but my target price for the day was based on the current trend and that is on the up. 5% jump on bigger than normal volume with some significant buy orders filled. Now my feeling is that we continue to rise and we will get to around the 30-31p mark, where we will no doubt see some profit taking. What I look at does not account for an RNS, but we know from reliable news sources that Tlw are in active discussions with Indian state backed oil firms to negotiate a farm out/ divestment/ sale (call it what you will) of their Kenyan blocks and news of that could cause a shock in the SP and we could see a spike higher - you could easily see 45p-50p. The devil is in the detail of what may be announced. I just believe buying at this level represents good value. I am not even going to cover the additional production due to come online over the next few months. Personally I see TLW as a perfect acquisition target and that too may well play out. Multiple value adding factors in the mix when you invest in Tullow!