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

Tom Winnifrith Monday 17 February 2014


Share this

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.
Read the full article on Shareprophets | Comments
About Tom Winnifrith
Tom Winnifrith is the editor of When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
[email protected]
Read next

FREE Podcast: ShareProphets Radio Edition 1 with Tom Winnifrith

Excuse my croaky voice. In this inaugural edition of the ShareProphets Radio podcast sponsored by Riverfort Global Capital, this week, in order I discuss the pot bubble, interview Nigel Somerville on Neil Woodford, flag up my next 3 FRC PLC victims, interview outspoken broker Andrew Monk, discuss why CSR is a waste of cash and interview Steve O’Hara of Optibiotix (OPTI). Enjoy. If you like this and can’t wait seven days for more of the same you should listen to my Bearcast every day.

On ShareProphets
Wednesday 17 July 2019 Copyright © . All rights reserved.
Created by Everywhen