UK 00:04 Tuesday, 22 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Within the last hour, the London Stock Exchange (LSE) has issued an official statement concerning the settlement situation involving stock in New World Oil & Gas (NEW). In short, the LSE has confirmed what we already knew, after it allowed New World to open on Tuesday. It is going to stand by its rulebook and allow market forces to try to resolve the fiasco created by last week’s reckless and incredibly forward selling of New World’s unconfirmed placement. The stage is now set for perhaps the biggest short squeeze in the history of AIM.
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Comments
DUCK AND DIVE
Should I be surprised that NEW were apparently not obliged to issue this as an RNS? I did see it posted on the NEW LSE forum earlier but possibly would not have been trusted.
Ben, I note that your story is time-stamped ’5 hours ago’ but I’m sure it has only just appeared – after the market close. Is someone trying to help the shorters?
TW Note - no I had not slept for 36 hrs and had travelled to the faer sout of greece & fell asleep you arseholeJason
90% up on the day suggests the squeeze is already underway but as 1.75bn shares have already been traded since markets reopened on Tuesday (711m 5/5, 247m 6/5 & 786m today?) you’ve got to ask yourself how many positions have already been unwound. Made a quick £400 on a quick in & out trade today which will pay for a nice meal for the family but there’s no way I’d buy again as risk of being left skewered on the spike must be pretty high now.
J P Spaghetti
That must be Beaumont Cornish screwed then!
Jeremy
As a buyer over many years of “obscure“mainly AIM listed,sometimes main market smallcap companies be assured it often takes the Market Maker months to actually settle trades.Unless your broker is particularly efficient OR you require your shares in certificated form you probably will not be told.
For example for several years up to end of 2014 I bought a fair number of small parcels of shares,usually a few hundred a time worth £1,000 to £1,500 a time,all on T+2 basis in listed company John Swan & Sons PLC.An Auctioneer of Cattle based near Melrose,Scotland.Typically it took around four months to settle each trade as HSBC Stockbrokers unusually advise me when settlement is delayed and then finally when they have obtained the stock.(The company owns land worth many times New Worlds assets and is presently subject to a takeover which somewhat undervalues the company).
There are no practical consequences of a shortage of stock,technical in the case of New World which has perhaps been sold originally on a T+20 or 30 basis and resold on T+2 basis,buyers are entitled to all divis etc(if only) on unsettled stock,you can sell if you want.The only thing you cannot do is hold the stock in certificated form until the broker physically has the stock.
It is all a storm in a teacup over a pathetic near failed non enterprise.All good fun but you are over hyping the issue and when the stock finally arrives the buyers today may find they have overpaid for shares worth perhaps 0.075p assuming you actually want to invest in a bucket shop with a hole in it!
J P Spaghetti
I wonder how much of the huge trading activity in the days following the placing RNS was actually down to forward selling though – pretty much all of it?
BusyB
So what changed in the last couple of days. 90% rise today, but flat the previous two?
Surely people were buying shares to cover in the market on Tue/Wed?
J P Spaghetti
“Surely people were buying shares to cover in the market on Tue/Wed?” Hmm – interesting delay in this announcement (by the LSE, I hasten to add – I realise TW’s been travelling) wasn’t it? I wonder how many bought in the frenzy as the market opened will regret doing so as the dust settles…