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.
- 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.