Placing with II at mate's rates (20% discount to recent SP levels) and combined with today's 15% dilution shows disappointment for existing holders (but if can hold, will do OK over coming weeks if PI's learn to take profits).
I know many have yet to awaken to this but the game of trading/investing is rigged which is why most PI's will never make money long term (I learned the hard way):
- No placing at a premium to II means directors are far from independent (only in law but not in practice)
- They can't disclose the identity of II and yet we, the masses, are required by a new EU directive to give consent to every Bank, company, school, institution etc to allow them to use our personal data (essentially us giving up our legal rights to our own privacy). Hmm.... (Btw, I have declined to give this consent).
- No indication by management of possible raise during recent meeting with PI's (and yet 'negotions' must have been taking place to set up today's raise), so hardly transparency at work - for the few, yes, for the many, no.
- Companies no longer 'allowed' to do rights issues as opposed to share dilutions (as in the past these often benefited PI's).
Combine the above with blatant SP manipulations as and when required by the powers, shows this game has become ever more difficult for the PI. Ever more reason for those of us who still have a conscience to help each other out on these boards.
Looks like theres lots of interest in jumping on the bandwagon at around 12.3p which is as near to the placing price as youre going to get I think.
Still pd off about not being invited to the party though!
Disappointed that this supposedly pi facing company has chosen to raise money in a private placing and not to invite pis to partake.
Still. The immediate drop to the placing price could be viewed as a buying opportunity, wth the money going to the seller as opposed to the companys coffers....shame on you Fiona !
I have read all the reports coming out of the company since the 2017 figures (no revenue) were released on 16 April 2018. Not one report says the company is in production to produce a visible revenue stream. What they have said is that in one of the wells they are drilling they have discovered gas. Well, they haven't worked out yet how to get this gas out, nor who they plan to sell it to. So a 'visible revenue stream' is possible, but it is a long way off. I doubt the company will have any revenue in the year ended December 31 2018.
Anyway don't let me stop any of you dreaming on. For that is what you are doing - dreaming. All I have ever said is that share is a gamble. But Longshot's do sometimes win, so you just might. It is just that I prefer backing the 'Frenkel's of this world; known form with a chance of further improvement. When, if ever, Echo Energy is 'placed' (showing signs of basic improvement) I might start to get interested.
It is a basic rule of betting on horses; 'don't bet on a maiden unless you know something'. I am afraid Echo Energy is a highly tried maiden.
Investors at the current price might make a fortune, but it is more likely that they will end up making a loss. Without analysis of more likely this statement cant possibly be classsed as fact.
What is fact is that after reformation of the company last year (when there was, of course, no revenue) the company is now producing from established wells and has a visible revenue stream.
This is reflected in the recent rise in sp.
Selling at this point may make some people a profit (certainly Im ahead of my average price) but my intention is to hold for a much higher sp in the future.
Im comfortable with my position here.
I might eat humble pie if this company ever achieves any revenue. All I do is report the facts; I appreciate this unnerves investors, but those who have yet to buy this share and are thinking about it need to know the facts. Reporting the facts is NOT de-ramping; I am merely preventing speculative ramping.
So here are the facts:
(1) This is purely a speculative share. Investors at the current price might make a fortune, but it is more likely that they will end up making a loss.
(2) The last published accounts for the company were for the year ended 31 December 2017. In that year, there was NO revenue and costs of drilling etc plus administration amounted to £5.8 million, resulting in an operating LOSS of the same figure.
(3) Cash continued to evaporate.
If you like speculative investing - fine, otherwise steer clear.
Good news and like the momentum here especially the short programme. Took a position here first thing on Friday and so far so good! I hope we get a similar run to SOU where I was fortunate to sell near the Ath. If we continue to hit the sweet spot then anything is achievable IMHO.
Ps. Not posted in a while on iii boards as my focus is now in Crypto!
Napalm. When I went to school 8.75 x 3 = 26.25. Now since I recommended a strong sell at 8.75p, the highest price this share has been is a fraction over 17.5p. So I can accept 'doubled' but 'nearly trebled' is over egging the pudding.
If you look at my 'strong sell' recommendations in total, rather taking the isolated case, then you will find I am right most of the time. However, when I recommend a 'strong sell' prices often increase before they collapse.
Whether you like it or not, this share in highly speculative. They have NEVER achieved any revenue that relates to a sale. It is always 'jam' tomorrow. Some people like to talk such shares up and others fall for it.
My recommendations are therefore aimed at long term investors, not short term speculators.
Wow, number bitter is back, we last spoke 29th/30th August 2017, where you proceeded to tell everyone how they were wrong investing in echo and posted a strong sell at 8.75p. Since that, it never went lower, the sp doubled and nearly trebled, so, in conclusion, I'd suggest your views mean squat and you haven't actually got any clue what you are doing. History proves that on this share, you could have costed people a lot of money if they followed your advice. No offence meant by this, but your obviously way out of your depth in the share trading game. How do you justify your previous terrible predictions?
I have just looked at the latest published accounts, being the year ended 31 December 2017. There is no revenue whatsoever and the company lost £7.5 million, There are no tangible fixed assets and the only effective tangible current asset is cash, which they have plenty of. BUT there is also a hefty long term loan and if you take this away from the wad of cash then there is only enough money in the pot to last one year at the current rate of cash burn.
Investors should realise that this is a highly speculative share. Given the number of shares in issue the company would have to make substantial profits in the future to justify the current share price. You can all work it out for yourselves. To justify the current share price EPS would have to equal 1.3p per share. Now the full year accounts tell you what the loss per share is when losses amount to £7.5 million. So you can work out what net profit is needed to get to 1.3p per share. If you believe the company can achieve this level of profit then fine; like Prior you must be a super optimist. Realists will sell while they can, as it is not certain that the company will be in business in a year's time.
Despite all the good news recently the sp remains moribund in the 12/13 range. The open communication policy of the triumvirate seems to be working against it at the moment for some reason. SOU is still exploring, seismic etc, drills later this year. Coro is still looking for its Asian booty, but ECHO is steaming ahead and there is no apparent reason for the slothful nature of the sp. surely people can see the difference here? Echo is the one making progress here. Revenue already established and more, much more to come.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.