UK 04:54 Friday, 6 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
I’ve been following the New World Oil (NEW) story with interest, and also a fair amount of surprise. The surprise element has largely come from reading the various chat forums, and even Twitter, and seeing the general lack of understanding of the situation the company and those taking part in the potential placing have found themselves in.
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Comments
Catempire
Well. No doubt a messy situation. As I’ve said from the very beginning the cheapest easiest way is for this to be played out on the market.
At the end of the day those that tried it on got caught out. That’s the bottom line. The company has enough money to see it through the bear squeeze with the potential to raise money at a higher price.
Would I be buying stock in the pennies as a private investor? Certainly not, do I think this going to hit big highs to flush out the amount of shorts that were opened? Most certainly!
IMO this is a very good situation for many reasons provided your not short!
Gary there is something that you have forgot to mention and that is some of those holding shorts will be locked in on a fixed term contract so which kinda puts a positive spin on the whole thing for the bulls… There are not enough shares to cover all positions and they’re locked in on fixed term contracts the rest is pretty obvious, knowing this it becomes a little more obvious as to when the penny might drop!!
Buyers be careful, holders hold & shorters I hope you’ve covered your arse and transferred your wealth!!
Mould Capital
The situation at New World Oil has attracted some extreme elements of greed, and I agree with Gary that a sharp correction (Downwards) is just as likely as a continued rally. I would hope that anyone who bought in below 0.01p has at least cashed out (or top sliced) a portion of their shares at good profit, because once the short positions are closed , anyone who didn’t ‘cash in their chips’ will be left with a share which is almost 1000% overvalued. The fundamental value of the share must be the placing price at 0.0055p or below.
Anyone ‘investing’ in this stage should be very, very cautious about the amount they invest, 90% downside probable if they dont sell their shares before the forward sellers have closed their positions
J P Spaghetti
Tell you what – I’ve been checking out the ‘asylum’ these last couple of days and I see the justification for referring to it this way. Posting has been relentless, and woe betide anyone – such as MC above – daring to point out the glaring (by virtue of being unknown) risk involved at this stage (people were buying at 0.008p apparently – not sure about the bid at the time, though). I’m sure Christian evangelists would be showing greater restraint if they’d heard through a direct line to an archangel that the Messiah was returning on Monday.
Sure – the SP may continue to rise and spike but the potential downside for those swept up in the mass hysteria who place just about everything including the kitchen sink on this is almost too horrible to contemplate! It may even be a nonsense to say caveat emptor if the shares being traded don’t actually exist.
To those who do go mad,
“Let me take you down ‘cause you’re going to
End up unheeled
These shares ain’t real
So nothing to get hot about
Virtual trades for never!”
Catempire
Anyone giving a broker £50-£100k to invest with a lack of research is hardly at the bottom of the food chain.
Also worth remembering the very top of the system likes these kind of f**k ups … Central bank loves it… I can’t see a s**t broker & the shorter getting a bail out when the system likes it.
This will play out to the deadline, despite some scare mongering and misconceptions, they need to close all the positions on the market so I certainly don’t buy the just as likely to drop, at least not yet!!
J P Spaghetti
Meant “0.8p” in my above post!
Garyn
I’d be interested to know exactly how many shares were flipped and what the actual short position is in the event of the placing being cancelled.
Also I expect some of those who forward sold would have hedged at the start of last week to protect themselves, probably via a T trade – unless they could find a CFD or SB provider who was still offering longs, in which case it would have been even easier to hedge around the 0.1p level.
J P Spaghetti
Well it began at 14:30 and was truly set in motion at 15:28 today – serious TLC will be in order for some