Sunday, 17 May 2015

DocsLaymanChatter: XL

Well what a week it's been in the markets, many points to consider but first and foremost it's nice to see Zak Mir back at The ShareProphets. My buddy Brokermandan has gone out on a full scale assault with his involvement with New world oil & Chris Oil, I wish them well as much as I hope Ben Turney gets the result he wants. I agree with Ben that the markets are screwing investors consistently, leaving the need for someone  brave enough to pick up the banner. Dan and Ben although at logger heads here have very much the same view regarding UK private investors being treated as prey by the London markets, although with very different views in the way they each see a rescue coming from.

Summers upon us and I for one very much look forward to kicking back and enjoying the fruits of my labour in what has been a labour intensive few years, I like many of you have been working up to 100hrs a week and this takes its toll. Entering into meaningless arguments or bickering is to me a big waste of time and whilst sometimes difficult to avoid but the reality is bickering is non productive. I will during summer be sharing bulletin updates on the new Docs Blog page here.

This will allow those of you interested to get eyes on what i'm doing without the flannel of twitter, it also gives those tuning in a head start on social media.

Lets look across some of the stocks that are interesting me and of course more importantly the companies talked about by you the retail community.

Boxhill Tech: Box has been a company I've covered for much of 2015, we have been aware that the company been in the recovery process but often the case that bad news lags and whilst new exciting things were happening in the background, the news runs behind thus leaving the market unsure to its credence. Naturally the recent update points very much to better times from the micro stock. (Note: Both TEA and now BOX have done 100% or more since discussing them. shorter term traders will have had a decent return - the testament of time will tell if they have a longer term workable plan) - Micro-cap watch returns in Autumn.

LGO Energy: I see LGO has stirred once again which could mean the usual move to 4p should the 3p or above hold for a session or two, although It remains unclear on the decline curve of the wells which means the story to me does not have the visibility to hold. LGO becomes a trader's stock until investors can understand i.e: Yr 1 2000bopd Yr 2, Yr 3,Yr 7 and so on as it's my belief that in years 2-7 the decline would wipe that production back to a few hundred barrels.

Galileo Resources: Has been the epitome of sad news with its CEO suffering a fatal heart attack, this has been a loss to the company and massive distraction, on top of this one of its institutional holders has (through policy change) been winding down its position '' talk about double kick in the balls ''. This has left the share price falling from 7.88p down to 2p however all is not lost. Colin Bird of Xtract (XTR) holds 35% and is holding the forte, I believe with a calming of the waters coupled to the distressed seller leaving GLR has every chance of moving back above 3p towards 4p. I'll talk about this more as things unfold however accept that this is a risky play which could yield high returns or punch holes in your portfolio.

Red Rock Resources: The deal's been done and the news released Friday here at 6.22pm this outlines that any Kenya threat on assets is being mitigated (hopefully) and the long awaited Columbia sale has been completed which means money in the bank, royalties and now a fresh pastures outlook. (I've been criticized for backing Andrew Bell here but he's really been a shining light on a number of fronts which will only become more apparent over time).

Edenville Energy: The kings of disappointments has come from this company over a well stretched out tenure ship on AIM however even though I fear all the excitement will come to less than some hope, we can't ignore the renewed interest not only in EDL but also in their peers. Kibo had a decent run (Eventually) and it would appear that EDL is having its moment in the lime light. I fully expect a continuation to the upside, i just don't see the longevity some may hope for. The first rule in the markets is expect the unexpected, so looking past the fossil fuel slaying business they are in I'd look out for a carry-on of volume to be the crux to bigger and stronger technical ranges. If it drys up then ship out, if it continues liquid then hold for greater returns.

All the best


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(These are but opinions derived from my own experiences and thoughts and are not adopted as a statement of fact)

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