Are companies like Rockhopper (RKH) far and few between?

oscar52

What I mean is, at the beginning of my, RKH was circa 35p, by the begigging of june, it was circa 320p - a 9* rise - so an investment of £1000 at the right time, would now be worth £9000.

Is this a freak occurence, or does it hapen regularly within the stock market, though maybe not to the extent above?

Shatners_Bassoon

RKH and DES are pretty much once in a lifetime investments, I've got shares in both. DES are very undervalued at the moment at 88p and worth buying into as they have at least 5 more wells to drill in the current campaign. RKH were lucky in that they struck oil on their first well (sealion) and DES found wet gas condensates but the oil was not commerically viable in Liz. RKH are due to well test and drill their next prospect Ernest next month so they will see further gains and could go up 1000p by Christmas. DES are a real good investment now as their next well (Rachel) is right next to Rockhoppers proven Sealion well.

There are other oil companies like RKH and DES for sure but none that have as much potential imo. Remember RKH have recently had another placing and the big II's like Credit Suisse are now onboard and there is even talk from the BOD of moving from AIM to FTSE!!!!

Good luck and DYOR!

gmgmgm

It's fairly rare, but bear in mind the risks. For the few people who've made x% gains, many many others may have lost everything. Oil & gas exploration is a very risky business. Steer well clear unless you have excellent knowledge and plenty of cash if/when you lose your stake.
Never heard of DES so won't comment on it specifically; but taking advice from forums is generally not a good approach. As Shatners Bassoon says, "do your own research"!

In summary, I wouldn't suddenly start speculating/investing on the stock market based on the performance of Rockhopper.

oscar52

Thanks both.

I dont have "money to burn" and appreciate you have to DYOR and have to have either knowledge or guts.

I wasnt going to attempt tp speculate on the next one or anything like that, but I suppose if you can see it happening and it does, it must be nice to be on board. Appreciate it can go the other way as well for example from well intended words, that in hindsight, should have never have been said such as those by Mr Ratner lol

sabretoothtigger

Its not that unusual, it happens. Encore just found oil in the north sea, watch them tomorrow. http://www.google.co.uk/finance?q=LON:EO

A normal market will give an appropriate price but also approximate. Now that oil is found in falklands it would be usual for every other stock exposed there to be over rated and over priced, its in the spotlight and the money is on the table already.

If you want to do best you need to pay attention before most others do which means lots of boring research and weighing up prospects. Typically the market overshoots, over and undervalues on fear and greed

I dont generally do small cap stocks myself because its so volatile, its very hard to get right I think unless I missed somthing.
Often the buy price can be 10% more then the sell price which means you lose money straight away


Have a look at www.stockchallenge.co.uk where they list tons of small companies.
Its a fantasy league but often the names are what small investors are interested in, check out all the red :eek:

marvin

Flavour of the month this time last year was Provexis (PXS) which is still showing me 400% up. It did show 2500% at one point but decided to continue holding.

Part of the art is knowing when to sell as well as when to buy, I think I have the buy bit down to a fine art but the sell bit I am still lacking in.

Shatners_Bassoon

sabretoothtigger wrote: »

Its not that unusual, it happens. Encore just found oil in the north sea, watch them tomorrow. http://www.google.co.uk/finance?q=LON:EO

A normal market will give an appropriate price but also approximate. Now that oil is found in falklands it would be usual for every other stock exposed there to be over rated and over priced, its in the spotlight and the money is on the table already.

If you want to do best you need to pay attention before most others do which means lots of boring research and weighing up prospects. Typically the market overshoots, over and undervalues on fear and greed

I dont generally do small cap stocks myself because its so volatile, its very hard to get right I think unless I missed somthing.
Often the buy price can be 10% more then the sell price which means you lose money straight away


Have a look at www.stockchallenge.co.uk where they list tons of small companies.
Its a fantasy league but often the names are what small investors are interested in, check out all the red :eek:

I short traded these today and made a few bob on them after I posted the same article and a new thread on both EO. and NPE.

I have bought in again at 45p and will now sit on them until they release the next catcher sidetrack results. Out of interest why didn't you get in on them after the 7am RNS this morning?

sabretoothtigger

Its not my thing to deal oil shares just because theres news. All the big players will overinflate the price before 8am in pre open trading and clever guys like you might short but thats super risky to me. Lots of unpopular but really great companies are available, its less frantic but a profit is possible I think in theory the price always reflects the real value eventually


Check this list of the best performing companies. The top one would have turned your £100 into £3000 in 12 months. That would qualify as rare but 100% you can see is much more common. http://www.nasd100.com/2010/06/top-uk-turnaround-stocks-updated-june-28-2010.html

£1000 in Cisco systems 1990 would have made you a millionaire within 10 years

£18000 in microsoft about that time would have done similar also

Both were and are good companies but you'd only now be about half a millionaire if you had failed to sell in 2000