All Stories

Magnolia Petroleum – 10 Reasons to Avoid a Bulletin Board darling: shares are 75% overvalued

Tom Winnifrith
Monday 17 February 2014

AIM listed Magnolia Petroleum (MAGP) used to be a bit of a Bulletin Board darling as its shares soared to 6p plus. The shares are now 2.2p, the house broker reckons they are worth 4.2p but a £20 million price tag really seems far too high for me. I’d sell now and look elsewhere. Sorry to enrage its devoted Bulletin Board followers but here are 10 reasons why.

  1. The history of US onshore oil companies that list on Aim is dire. I have been in this game for 25 years and struggle to think of a success. I can think of numerous failures. If you have quality assets you raise funding in the US, the reverse is invariably true.

on Shareprophets | Comments
About Tom Winnifrith
Bio
Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
Twitter
@TomWinnifrith
Email
[email protected]
Recently Featured on ShareProphets
Sign up for my weekly newsletter








Required Reading

Recent Comments


I also read