UK 14:17 Tuesday, 22 September 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.
In my macro themes for 2015 article HERE I stated that I was fundamentally bearish on equities and as such half of my ten tips of the year would be shorts. Another theme for 2015 (as it was for 2014) was an extreme aversion to oil stocks. In that vein I return to Igas (IGAS) which I first suggested shorting at 56p a month or so ago HERE but where I am now halving my target price to 10p making this my second top short for 2015.
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Comments
robert
Given that the former owner of 14.6% of Dart has just substantially increased their shareholding in igas a class action doesn’t seem likely. The economics of onshore shale gas production do not depend on the oil price it is a different market. UK gas is still very expensive twice the price of 2005. That’s why ineos are interested in shale gas and will probably buy out igas quite soon.
Tom Winnifrith
Robert
So that still leaves 86% of Dart shareholders who are massively underwater who could still kick off.
Re oil price – see note from joint broker Canaccord. At this oil price Igas defaults on its debt. In such circumstances any bidder if there is one needs offer zero for the equity – can just buy the debt
T
Malc
To
Quote, “Re oil price – see note from joint broker Canaccord. At this oil price Igas defaults on its debt. In such circumstances any bidder if there is one needs offer zero for the equity – can just buy the debt.”
I’d be greatful for a link or cut and paste please.
Thanks.
IGAS_4EVR
Bit of a nonsense article really. I see that the Telegraph currently has a piece entitled “Oil blaze in Libya could drive oil prices back above $60 per barrel” so that kicks your first assumption into the long grass. Secondly a lot of Dart shareholders have sold. Thirdly, you (for some reason.. can’t think why!) ignore that Igas has now the largest onshore shale acreage which, if only 5% is found to be recoverable, turns the company into a multi-billion pound enterprise overnight.
Your entire article rests on a sentence about some anonymous bloke who you claim says that even though shareholders won’t dilute their holding at current 75% losses they will if the SP hits 10p. I don’t see why investors, who at 10p would probably be sitting on 95%+ losses, would really care to take that down to 99% losses.
Flow rates, more drill results and new licensing round all to be revealed in 2015 means shorters like yourself are likely to get burned quite heavily in 2015.