UK 11:57 Wednesday, 7 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: The author has a short position in one or more of the shares 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.
Of the many lessons to be learned from the Globo (GBO) fiasco, perhaps the most salient is the danger of deriving comfort from institutional purchases. In the final days, as an obscure German fund named Forum was hoovering up stock (the founder’s stock, as it later transpired) a lot of impressionable punters were doubtless persuaded not to sell and maybe even “average down” on the basis that these guys are professionals and therefore “must have done due diligence”
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Comments
Simple Moving Avarice
It was a similar tale with New World Oil & Gas (NEW) which had the seemingly reasonable investment policy of “late-stage exploration, or undeveloped discoveries in basins with proven oil and gas reserves that are in close proximity to markets with world oil prices, in countries with low political risk” – with a lot of talk of low risk and risk mitigation. In that case Axa S.A. had a 10% holding and for a while would dutifully take part in each placing to maintain its 10% holding.
Then NEW overspent on a drill, mistimed the next placing and began its journey into the abyss.
wildrides
Great piece Lucian.