A couple of months back I covered Longboat Energy (LBE) as highly speculative buy, and since then the share price has moved far quicker than I expected, and is currently pretty much double the level that I tipped it at.
So far Longboat Energy (LBE) has proven to be a good example that the past successes of management in the oil and gas industry isn’t necessarily indicative that they will achieve the same again when they set up a new venture.
When I covered Longboat Energy (LBE) last July there was much derision on social media and bulletin boards over my opinion that the company was well overvalued at the share price at that time, but it has just announced that it is raising funds at discount of around 40% to that level in order to complete an acquisition.
Longboat Energy (LBE) is a company that I actually like and hope does well longer term but, having seen its share price double, I’m finding it hard to see where the value is up here and would be inclined to at least bank some profit...
