UK 15:41 Sunday, 25 October 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.
Perhaps I am a mug punter, an inveterate gambler or just plain stupid, but I can’t help shake the feeling that 2014 could be a good year for AIM Oil & Gas exploration stocks. When writing, one of my favourite rants is about how the Alternative “Investment” Market is investment death. This view isn’t universally popular, yet you will have a hard time convincing me that anyone who puts money into AIM isn’t a speculator, pure and simple.
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Comments
wildrides
I think your missing the point of Aim ………. it is after all for start up and young companies to establish themselves raise capital and grow. There is bound to be a high attrition rate of projects that just did not work for one“good” reason or another . It is always going to be very high risk and very high reward for investors .However what we want is Toms grand vision where by there are are no corrupt business practises conning shareholders, but instead just the inherent risk of a new Idea or project not working in practise. The fun then will be spoting the ones that have a good plan rather than as it is now …..spotting the corruption . If we can remove the corruption Aim will be a fine investment vehicle for those who like higher risk and bigger rewards.
The natural resource sector is on the floor .The only one that is . Buy when others are fearful and you will be a man ( unless your a woman)
and make money on the way up . The Baltic Dry index says the time is now AND you godda be innit to win it .
All other sectors apart from banking are fully valued .
Ben Turney
Yes wildrides, I understand what AIM is meant to be, but I do not believe the reality of this lives up to the goals.
It is interesting you raise the attrition rate. One of AIM’s biggest problems is that there is just not enough genuine failure. There are too many companies, whose projects have failed, to all intents and purposes, but still manage to survive thanks to the placement merry go round. This is not just in the resource sector, though this segment appears particularly blighted by this issue. Look at the number of companies that delisted over 2013 and look at the amont of money raised in secondary funding. Then compare this to the number of companies which graduated to the main board and the amount of money raised for new entrants.
The numbers strongly suggest AIM is becoming or has become a zombie market.
You are right to point out what AIM could be. The c.£80billion raised for companies since 1995 is extremely impressive. Sadly though, I fear this resource has been wasted and the substantial drop off in money entering the market points to further failure.
Your point about the BDI is another interesting one. I am bullish on the mining sector for 2014, but I’m not sure I include the AIM listed stocks in that. After all, for the most part, these aren’t companies which produce/mine anything. There’s some food for thought there…
Have a Happy Christmas
Charioteer
Chariot is one of the better AIM Oilers. It got spanked after its two drills tanked and no doubt some serious shorting happened on the way down in this zero sum game to make a few people extremely rich. Although – you cannot tell from Euroclear stats – which may mean the stock was loaned for shorting in an alternative manner. Go figure.
Either way – its share price and market capitalisation are on the floor. The market does not believe that it can do anything right and so is hammering it by following cash. Given that Tower is now at a market Cap of £126M and are nothing compared to Chariot I too believe that Chariot will push harder and higher for a huge hike in market cap in 2014 – it has the acreage and the farmin opportunities and appetite for risk isreturning. One strike and its a £1bn + company. Simples.
Charioteer
One other thing. Larry also bought shares a few months back as well as this month.
Charioteer
Mauritania result should be any day soon. If Tullow strike – 1st of 4 wells – then this will be good news on The Mauritania front for Chariot…second farmin will come quickly after that…
Charioteer
http://www.helioschariot.com/2014/01/26/chariot-oil-gas-2014-cash-carry-share-price-december-2014/ you might well be onto something Ben …makes the case …