If you want me to analyse a stock for you just drop me a line at sqmir@hotmail.com - Today I look at MX Oil (MXO), New World Oil & Gas (NEW), Oilex (OEX), Sefton Resources (SER), the "dream portfolio" of the man who claims to be better than Warren Buffett, Mr Chris Oil
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Last night, NWOGaction set the date for relaunching itself as the formal New World Oil & Gas (NEW) shareholder action group; tomorrow. Early indications are that the new action group will receive confirmed support from 4.11% of New World’s shareholders. This number is expected to grow in the coming weeks. The full statement can be read below.
The New World Oil & Gas (NEW) forward selling fiasco took yet another bizarre twist this morning, as the company announced that Alliance Trust Savings had taken a 13.25% stake. There was widespread speculation that this announcement was a cunning ploy from market abuser Chris Oil, as this involves his broker, but I didn’t believe that for one second. Chris Oil has proven beyond all doubt that he doesn’t have the gumption for cunning ploys, so this transaction looked like something different. The question was what?
This morning’s RNS from New World Oil & Gas (NEW) proved once again what a fork-tongued liar Chris Oil is. At some point we will probably get bored of running pieces about our favourite market abuser, but the latest cack-handed deception is worth a quick mention.
The New World Oil and Gas (NEW) saga is something that I’ve avoided making too much comment on, but now find myself in possession of information pertinent to it. Below I provide a copy of a letter that has been sent to me, which was sent from Cornhill Capital to its clients about the losses they suffered as a result of forward selling New World's unconfirmed placement.
It’s not fashionable to say this, but there are times when it is impossible not to feel intense pride at being British. I experienced one such occasion last Thursday night. It is deeply woven into our national spirit never to give up; a characteristic which New World Oil & Gas’ (NEW) ordinary shareholders are increasingly demonstrating in spades. While the naysayers and market abusers crowed that the desire for shareholder action would be broken by the heavily dilutive, mispriced open offer, New World’s shareholders rallied to the call for positive change in their company. As of writing, as much as 4.8% of the company has indicated its intention to join the reformed NWOGaction (www.nwogaction.co.uk).
Market abuser Chris Oil has amazingly still been offered a platform by the ADVFN Newspaper to write his semi-literate shite. Today he tries to pump New World Oil & Gas (NEW) with a ludicrous suggestion that a company with piss-poor worthless assets, a totally discredited management and c£3 million of cash could be worth £40 million. In this podcast I serve up a translation of the Oil piffle which you can see below.
Even at the best of times it is not exactly easy to get a handle on the technicals of stocks priced at fractions of pennies, given the way that even those stocks priced above the 1p mark can be problematic to say the least.
New World Oil & Gas (NEW) shares were suspended at 0.24p because of the inability of shareholders to get trades settled. Following a £3.5 million fund raise at 0.09p that seems to have been settled and the shares have restarted trading today, duly crashing to 0.08p -0.1p. Questions, questions.
We’ve just heard that New World Oil & Gas (NEW) returns to trading tomorrow. Denzil Jenkins, the Head of UK Compliance and Regulatory Policy for the London Stock Exchange, is now going to have to prove that his job isn’t just a pointless paper pushing exercise. Having failed utterly to enforce its three rulebooks (“Rules of the London Stock Exchange”, “AIM Rules for Nominated Advisers” and “AIM Rules for Companies”), the embarrassment the New World forward selling fiasco has caused to the London Stock Exchange is acute. There are now serious questions about the integrity of the exchange and the viability of the AIM model of self-regulation. Private investors have lost millions of pounds to the regulated City perpetrators of this mess. And so far nothing has been done.
This morning, Metal Tiger (MTR) announced that its outstanding unsettled position in New World Oil & Gas (NEW) has been settled. Two months late, the failure of regulated market participants to fulfil their contractual terms has materially and detrimentally impacted the fortunes of hundreds, if not several thousand, private shareholders up and down the country. The shareholder action group could not reach the 10% threshold to requisition a general meeting directly because of this. While the London Stock Exchange failed miserably to enforce its own rulebooks, the FCA stood idly by and did nothing. This whole episode is dreadful for the reputation of AIM and calls into question how trustworthy or viable is this market?
New World Oil and Gas (NEW) has been explicit with its warnings that the plan to conduct a Placing and Open Offer is not guaranteed to solve the settlement crisis, which saw the London Stock Exchange belatedly step in and suspend trading. Tuesday night’s RNS (after hours, natch) with the results of the offer continued to warn that it may still not result in the lifting of the suspension. Let us have a look at the numbers.
The New World Oil & Gas (NEW) forward selling fiasco has been a disaster for the credibility of AIM. So far, every single safeguard that is meant to be in place to protect private investors has failed. Predatory regulated City firms are on the cusp of making millions of pounds of profit from the chaos they have caused, while hundreds of private investors stand to suffer unacceptable and unjust losses. Had the authorities been doing their jobs properly in the first place none of this would have happened, but such is the paucity of regulatory oversight on AIM that the conditions have been primed for this shambolic situation for a long time. Nevertheless, the London Stock Exchange has one last chance to prove itself deserving of its licence for self-regulation of “the world’s most successful growth market”.
At the start of the New World Oil & Gas (NEW) forward selling fiasco Liam was cited as being one of the “innocent” forward sellers, who “accidentally” got himself embroiled in this mess. In fact, Liam was the primary example used to paint a human face on perhaps one of the most reckless market acts ever witnessed on AIM. Unfortunately for those who chose Liam as the forward sellers’ poster-boy, he has not behaved well. Posting under the username “Awkward Turtle” across social media, Liam is quite removed from being an “ordinary” private investor. Mr Turtle, as it is perhaps more appropriate to call Liam, is a small, yet revealing, part of something far more sinister and well coordinated.
In one week New World Oil & Gas’ (NEW) highly controversial placing and open offer closes. The company expects to announce the result the following day. It then hopes that the London Stock Exchange will admit the new shares to trading on 10 July. This will present an acid test for AIM’s integrity and credibility. Few seem to appreciate the dilemma now facing the London Stock Exchange.
I took a temporary vow of silence last week concerning New World Oil & Gas (NEW). We should learn soon enough whether my faith in the regulatory authorities was misplaced, but there is one issue I am compelled to speak out on; the sickening and unconscionable fees New World has agreed to pay Cornhill Capital in relation to the highly controversial open offer.
