Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.

Tom Winnifrith Bearcast 5 February - Do NOT overpay for Adam Reynolds "magic"

By Tom Winnifrith

5 February 2016 05:23

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The story of the day is Frontier Resources (FRI) and Adam Reynolds. Yes we were in on the placing and have bought more pre bearcast but some folks are overpaying big time. Far be it from me to talk down the value of a stock we own but I do just that and urge folks not to be mad and overpay. Then it is onto Bahamas Petroleum (BPC), Phorm (PHRM), Fusionex (FXI) - target price 0p - Greka Drilling (GDL) - ditto - and Glenwick (GWIK)

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Comments

Bearfacts

5 February 2016, 08:14

Good luck with Frontier (FRI), hopefully Adam will (when he gets time) sort Orogen Gold out eventually.
Have good risk retward for you! Vox Markets Oil Price $weep$takes.
You being an Oil junkie should have good chance of success, its 3 week rollover next week.
100% return possible ! Maybe someone should tell Chris Oil his family found the North Sea oil you know!
All the best…..
Xanderbelle

5 February 2016, 10:20

Confused now.
I thought that Mr Reynolds went into New World oil and Gas in order to have a cash rich shell to back a business into !!
Why would anybody need two?
What does this mean for nwoig ?
Tom Winnifrith

5 February 2016, 10:28

Xanderbelle

Mr R not a 1 trick pony, Id feel sure that NWOG far from abandoned

Bearfacts – Orogen C Bird Esq now i/c

t
Howard

6 February 2016, 05:11

Tom. At 0.8 with over 5 billion shares in issue fri will have over a £4m market cap with £1.4m cash. New are pretty much at cash value now with the current market cap. My question is why are you not buying into NEW? Surely that’s the better value shell
Tom Winnifrith

6 February 2016, 05:16

Howard

Listen to bearcast. Buy at 0.08 and you get 1 warrant at 0.03 so my avg in on that trade will be 0.0575 so paying just under £3m for shell with £1.5m cash. admit not cheap but happy to pay that amount for AR. And 75% of shares we own in FRI were bought in placing at 0.03p ( £1.5m valn vs £1.4m cash). So relaxed with this one.

New am sure AR will make money too & we will buy in when the time & price is right.

T
Howard

6 February 2016, 05:28

Tom thanks for the reply and I get the logic. However the placing of £1.4m will have expenses and corporate costs need to be picked up on an ongoing basis. AR is unlikely to find an asset for some months and it could be argued at some point in the near future, investors will be able to buy at 0.03 on the open market….only my opinion
Tom Winnifrith

6 February 2016, 05:55

Howard

You think AR paid 5% on that placing.Think again. The brokers raised nothing it was all friends and family so max commission is 1%. My guess is that that will be offset by warrant exercises n april 6 so cash pretty much all there.

You think an AR shell will trade at no more than cash ahead of an RTO? I hope you are right as at anything under 0.05 (without warrants) ie after 15th Id be hoovering up stock. I think that many OPTI shareholders will be too so, sadly, fear you are wrong. We shall see

T
Howard

6 February 2016, 07:24

I am only going by how NEW has reacted with an upcoming RTO – Nothing at all at the moment with a SP rise. AR has a good CV but one day one of them will go wrong. Hope it does well