By Peter Brailey | Wednesday 30 October 2019
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.
The share price of Main market-listed Nostrum Oil and Gas (NOG) has declined from 780p back in August 2014 to 10p on 11th October and has now recovered to 26.5p. With a market cap of some £50 million but production around 30,000 boepd it initially looks like a bargain. But, as is all too often with such investment cases, it’s drowning in debt with little sign of ever being able to pay this back. A debt for equity swap seems the only way forward to me. At best...
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