Mercom Oil Share Discussion Threads

[hedgehog 100] 06/1/2016 16:45

The recent chart is looking positive, with good closing support at the 2p level, and the makings of a climb back up to 3p.

[iloveit] 04/1/2016 15:45

Blimey why cant you BUY shedfull of this stock?
Typical holders now hanging onto stock so mms cant get any !
Lets see what happens when a massive order comes in watching closely !

[mikeh30] 04/1/2016 09:25

Can't buy much. Stuck a few quid of fun money in.AIM silly season is upon us and illiquid small caps are flying at the moment. Out of the blue this will bag.

[hedgehog 100] 02/1/2016 12:50

The third highest riser on Thursday 31st. December, LIFE, has more than doubled recently from 2p (the same price that MMO is at now):

LSE % Gainers Top Lists
EPIC Name %
GGP Greatland Gold +57%
CLP Clear Leisure +46%
LIFE Life Science De +43%

Price Price Change [%] Bid Offer Open High Low Volume
4.88 1.475 [43.38] 4.75 5.00 3.25 5.25 3.20 3,492,079
Market Cap. [m] Shares In Issue [m] Beta EPS DPS PE Ratio Yield 52-Wks-Range
1.83 37.50 1.65 -28.64 - - - 5.25 - 0.85



This shows the potential of oversold investing companies / shells like LIFE and MMO, at a market cap. of under £1M. and trading at a discount to cash.

And MMO's discount to cash is a lot more than LIFE's was at 2p, and its market cap. a lot lower.

[hedgehog 100] 30/12/2015 18:31

MMO's interim results just before Christmas were good.

Cash burn has been reduced to just £70K. per half year, and cash at the end of September was £539K. ... fifty six per cent higher than MMO's market cap. (£345K. at 2p).

[hedgehog 100] 19/12/2015 20:43

'Incestuous investments' can actually be a GOOD thing for arranging a RTO, because this can ease the way: i.e. the same people have influence/control over both sides of the deal, so an accommodation is more likely.

Is something of this nature on the cards here?

And does this explain the buying over the last couple of days?

[hedgehog 100] 19/12/2015 20:15

MMO's micro cap. of just £0.37M. means that IF it has a RTO (reverse takeover), then a bigger uplift is more likely than otherwise.

E.g. if the RTO vehicle has a £2M. share of the enlarged equity, a shell already valued in the market at £2M. will have no uplift based on the RTO value.
Whereas one currently priced at a fifth of that should rise five-fold.

In MMO's case its NAV is multiples of the current share price, and it's likely that an RTO value would reflect that.


From the thread "CEB Resources with Charts and News (CEB)":
5baggersrus 11 May'15 - 11:01 - 17 of 1138 0 0
"Phil ... look at MMO for another decent play they are trading 50% of cash ... 25% of NAV ... just needs some news to get them moving !!!!"

[hedgehog 100] 19/12/2015 16:27

5bags,

Why not debate maturely, instead of just coming out with that clichéd troll mantra like a parrot?

MMO's investment met the AIM rules, and that is fact:
"As a result of these investments, the Company was deemed to have implemented its investing policy for the purposes of Rule 15 of the AIM Rules for Companies."

MMO has also just closed on the top leaders list for two days running, directly ahead of its interim results.

That is a good sign, and suggests that some people disagree with you, and are prepared to put their money where their mouse is.


P.S. Yes, there's been a £200K. asset impairment, but that's in line of the sector, so what makes you think it's a reflection of its quality?

30/09/2015 17:24 UK Regulatory (RNS & others) Mercom Oil Sands Plc Final Results
"Our net asset value decreased to GBP0.12 per share from GBP0.17 per share in the previous year. Net assets value at 31 March 2015 was GBP1,428,492 compared to GBP1,818,865 as at 31 March 2014. The decrease was chiefly the result of the cash used in operations and the GBP200,000 impairment recorded on the investment in Lion Natural Resources Limited."

[5baggersrus] 19/12/2015 11:18

Hedghog its a POS ... simple

[hedgehog 100] 18/12/2015 20:38

Another good day for MMO, closing for the weekend in third place on the top risers list:

LSE % Gainers Top Lists
EPIC Name %
AGQ Arian Silver +40%
ZOX Zincox +35%
MMO Mercom Oil +31%

Price Price Change [%] Bid Offer Open High Low Volume
2.13 0.5 [30.77] 1.75 2.50 1.63 2.13 1.63 164,966
Market Cap. [m] Shares In Issue [m] Beta EPS DPS PE Ratio Yield 52-Wks-Range
0.37 17.23 -10.93 -4.00 - - - 7.50 - 1.00


John,

The good thing about a micro cap like this is that you can buy a meaningful percentage stake for a very modest outlay.

For a few hundred quid you can buy a thousandth of the company.

Whereas to buy a thousandth of a £10M. cap. company would cost ten grand.

[johndee] 18/12/2015 14:05

We would have to be very brave indeed to buy any more though.