Weekly Digest 16 September 2017

So another week has passed and no doubt many of you will have experienced the highs and lows of your trading and investment journeys. We’re here to round up our thoughts on what has been happening across AIM and beyond but first… an announcement!

Regency Mines Plc (AIM:RGM) and WideCells Group Plc (LON:WDC) will be appearing at Share Talk’s first Investor’s Evening in London at the prestigious NEX Exchange on Wednesday 27th September 6-9pm.

The well-travelled Zak Mir will be on hosting duties and we expect to confirm at least one more guest very soon…

As a friend of the late Bradley Lowery RIP, Share Talk has set a £5+vat fee as limited tickets are available and all proceeds will go to the Bradley Lowery Foundation run by his family for other sick children who are in desperate need. We hope you agree that this is a worthy cause for your donation.

To book your ticket please click here. Please book early to avoid disappointment.

 

So back to business… we’ve picked some stand out items from this last week which we’ve noticed but make sure you tell us what’s on your mind and we’ll do our best to cover it next week or approach the company for interview on your behalf. Share Talk will always remain impartial and we welcome any feedback our readers have on this blog.

Connemara Mining Company Plc (AIM:CON)

Having risen from recent lows of 1.47 pence in May this year, it looks like CON is in somewhat of a resurgence having recently announced a new CEO in Patrick Cullen and this week came the announcement that Group Eleven had acquired Teck’s 76.6% stake in the Stonepark zinc project in Limerick, Ireland. CON had a cash and royalty offer on the table from G11 for their 23.44% interest but declined, despite that offer being somewhere in the region of £1.5M (or referred to as 75% of the company’s Mcap in the RNS). What we do know is that resumption of exploration at Stonepark is now likely to take place in the near to medium term and that CON still have 35 licences across Ireland that involve JVs with Hendrick Resources, Teck, and now G11.

What would you have done if in Patrick Cullen’s shoes? Would you have accepted cash and a royalty offer on the same terms as Teck? Time will tell as to whether the CON board took the correct decision or not.

UK Oil & Gas Investments Plc (AIM,NEX:UKOG)

It would feel strange not to mention UKOG given all the news that has been surrounding their Broadford Bridge works of late. In the latest update we found out that West Sussex County Council’s Planning Committee have unanimously approved a one-year extension to the existing planning permission covering its 100% owned BB-1 and 1z exploration well, located in licence PEDL234. The extension, which will expire in September 2018, enables the company to complete the full 14-week extended flow test programme as originally permitted and planned. In addition, the Oil and Gas Authority’s flow test consent has been similarly extended to December 2017. Well testing equipment is now fully assembled and testing operations are underway.

Both Share Talk and UKOG investors are watching closely to see what happens next with upcoming flow test results expected to be drip fed through via RNS over the coming weeks and months. Will they be positive? If so, what do you think will happen to the share price? Many social media commentators are saying it is already overvalued while others have some pretty wild predictions on how far up the share price might go. The stock does seem to be creating huge interest again and the battle of the Bulls v Bears will no doubt continue on for the foreseeable future.

Angus Energy Plc (AIM,NEX:ANGS)

So it’s fair to say there was a slight delay in spud at Lidsey due to the drill rig being elsewhere without stating the obvious. Now the X2 well has been spudded we’re expecting a period of approx 6 weeks before it can be confirmed that conventional oil production is taking place. The company also put out a list of FAQs about the Brockham field on their website earlier today which puts to bed a lot of the false rumours circulating on social media. It would be great to see more companies taking this kind of proactive approach to working in shareholder’s interests. Share Talk are aiming to do a podcast next week covering ANGS all being well so we look forward to sharing that with our listeners soon.

Motif Bio Plc (AIM,NASDAQ:MTFB)

We hadn’t forgotten about this popular BioPharma stock but since the last placing to further the development of Iclaprim we hadn’t heard much from the company in the way of significant news. That all changed today as a number of users on twitter began circulating information that Iclaprim had been granted Orphan Drug designation by the US FDA. Now… you don’t need me to tell you that you should NEVER believe everything you read on twitter in the same way you shouldn’t believe everything you read or listen or view on any other type of media… BUT… this time it turned out to be correct. Whilst the rightly boastful twitter users waxed lyrical about their findings, the company were forced into releasing an RNS to confirm to both US and UK markets that Iclaprim has indeed been given this next step up the ladder to full FDA approval.

So what does this actually mean?

Many were predicting a huge surge in share price which ultimately never came, but an intraday gain of 7.21% is not to be sniffed at and with the RNS came the volume in trades. I expect to see a continuation of both trading volume and positive share price reaction early next week but as ever… DYOR.

88 Energy Ltd (AIM,ASX:88E)

It’s been a tough time for holders of 88E recently. Flow test results haven’t gone to plan after a huge outlay was put in place to begin Project Icewine #2. A resulting shut-in hasn’t appeared to have delivered the outcomes that Dave Wall and the hordes of 88E investors had hoped for. As stated in the most recent RNS, the flowback procedure remains early stage with only 19.0% of the frac fluid retrieved. The gas observed so far is not considered representative of the potential rate or composition of hydrocarbon in the reservoir. It is interpreted that additional frac fluid needs to be removed in order to achieve a representative result. A decision will be made on the most appropriate strategy to accomplish this within the next two weeks.

So… it isn’t looking very positive at the moment… but… is it particularly negative? How do you think the 88E story is going to end? Will they be able to declare the play as ‘conventional’? Can the oil be extracted? Will more funds need to be raised? The answer to all this is… we don’t know at this stage and until we find out what strategy the company is going to deploy, the outcome remains muddy (or could that just be the fracking mud!).

No doubt the keyboard warriors will be out in force when they read this but this is one share price that rarely lies and the market will react one way or the other when the next significant news hits our desks (or phones!).

Empyrean Energy Plc (AIM:EME)

Just like the gas, the news continues to flow out of EME with yet another RNS this week confirming further gas shows at Dempsey. With Tom Kelly in town this week doing the rounds and catching up with the likes of Malcy-Graham Wood, we took another opportunity to speak with Gaz Bisht in this exclusive interview below.

 

Ferrum Crescent Ltd (ASX,AIM:FCR)

Last week saw a placing for £193,304 announced to undertake additional exploration and evaluation activities at the Toral and Lago lead-zinc exploration projects in Spain and for general working capital purposes. We caught up with Justin Tooth to find out more in this podcast last Friday. Today we had another RNS confirming a notice of general meeting. Now more often than not, I admit to being a bad investor and not always taking full note of these. Well you definitely should! Trawling through social media as you do on a Friday afternoon I noted some investors saying they had sold their entire FCR holdings based on last week’s placing RNS and today’s Notice of GM RNS. Why? Resolution 1 at FCR’s upcoming GM is for approval to raise up to AUS$2.7M. Now the question I would be asking Justin is… you’ve just raised £193k… before expenses, what do you now need the equivalent of roughly AUS$2.7M for? And when? The vast majority of shareholders have a very negative connotation with placings and I fully understand why. They dilute existing shareholders, not to mention allowing in fresh money often at a cheaper price and sometimes with the additional bonus of warrants attached. All that said and done… sometimes… just sometimes… a solid institutionally backed private placing can be the catalyst to take a company to the next level. Is that where FCR are going? DYOR as always. I’m sure Share Talk will be speaking with CEO Justin Tooth again and we will always ask questions for shareholders.

Canadian Oil & Petroleum Ltd (AIM,TSX:COPL)

COPL are a company we’ve followed for a while on Share Talk. They’ve certainly had their ups and downs and investors have both gained and lost in large amounts on this share. Right now we know the company is in a period of transition, yet are fully focused on where they’re going. They just need that magic word… money. We caught up with COPL CEO Arthur Milholland in this wide-reaching video interview:

 

#TheBizLounge by Mark Johnson: Taking the stress out of stocks

This week’s video features from Mark featured Next, Just, Quiz and Petards as the FTSE interims continue to clog up the RNS board. As well as his stock-in-focus, Mark always has a big boss of the day and this week’s offerings were no exception as EU politics came to the fore whilst Citroen’s CEO Linda Jackson promised to tackle sexism in the workplace. Take a look back at this week’s videos below:

 

Thought of the week

Someone told me the other day that the thought of the week is copyrighted and I shouldn’t plagiarise. I don’t think Jerry Springer will mind too much will he?… (no answers on a postcard please)
On a more serious note, it feels tedious to say there’s been lots of ups and downs yet again… so I’ll refrain. I wish all investors the best in their investment journeys, whatever stock and share it is you may be invested in. I see a lot of bitching and inflated egos on a daily basis on twitter and to be frank, I find it all a little bit pathetic. DYOR, invest your money, make your choices, deal with the consequences. Stop telling the world how good you (think) you are. Hold back when you feel the need to talk down a share you’re not even invested in. Be nice to people. It’s really not that hard. I’ll sign off with one of the best things I saw on twitter this week, (if not the best…):

 

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