Ridiculously low share price... but tempting anyway

mspoppins

Hi,

I've been reading stuff and looking at some shares (not buying anything yet) and then I came across this oil-well development company in Canada.

They've been around for quite a while, prospecting, digging, boring holes here are there. They're not bankrupt or anything but their share price is like half a penny and it's stayed like that for the last couple of years. I'm actually sooo tempted to buy some

As far as I understand, the maths is simple. If they don't find oil, they'll soon go bust. However, if they do, the share price might sky-rocket. Any thoughts? Has anyone here bought high-risk shares?

JoeCrystal

Which is why it is jolly good idea IF you want to invest into them, to invest glimmer of your investments in them and smile sheepishly when they go bust.

I believe the same will happen to all my sustainable companies *sighs*

Cheers,
Joe

zugzwang

The other thing they often do is keep coming back to market for more money and your shares get diluted.

I'd be inclined to invest in a major oiler before thinking about penny shares.

MSE isn't the best place to ask about shares perhaps. But you can ask on Motley Fool discussion boards if you are interested in small oil companies.

http://boards.fool.co.uk/oil-gas-companies-50029.aspx

Motley Fool discussion boards are good for serious discussions on shares IMHO.

Or if penny shares is your thing all the crazy people and many day traders hang out on ADVFN forums. You'll learn nothing there but its a fun place to chat as your money disappears!

JoeCrystal

zugzwang wrote: »

Or if penny shares is your thing all the crazy people and many day traders hang out on ADVFN forums. You'll learn nothing there but its a fun place to chat as your money disappears!

I actually went to ADVFN forums and found it quite terrifying at the sheer belief about the market makers and that the company must be good. Plus that some users really have an ax to grind and the sneers you can pick up on the posts. So I decided to avoid all message boards since they are mostly full of dross. Of course, I am aware that there is some good information but really, they are virtually non existent.

Of course, in some case ignorance may be best defence against other posters. After all, it makes yourself reliant solely on your judgements and not of others.

Cheers,
Joe

zugzwang

JoeCrystal wrote: »

I actually went to ADVFN forums and found it quite terrifying at the sheer belief about the market makers and that the company must be good. Plus that some users really have an ax to grind and the sneers you can pick up on the posts. So I decided to avoid all message boards since they are mostly full of dross. Of course, I am aware that there is some good information but really, they are virtually non existent.

Of course, in some case ignorance may be best defence against other posters. After all, it makes yourself reliant solely on your judgements and not of others.

Cheers,
Joe

I wouldn't judge all investment message boards by ADVFN. It's the Wild West of discussion boards. Its for chat really rather than discussion because of the volume of posts and lack of moderation.

Motley Fool is different imo. You will find knowledgeable and professional people. People who post reports back of experiences after attending shareholders meetings. People who analysis of NAV prospects for oil companies. etc.

However, the bottom line is you can never and should never rely on any other poster anywhere. But its still useful to have company along the way.

ses6jwg

They don't all go bust btw.

I bought Rockhopper exploration at 38p and sold them at £2.42 a few months later.

C_Mababejive

Theres always the chance to make it big . After all, every company was a startup. As some have said,they often bob along at a low price for ages,there are dilutions etc. Take a look at VOG. They too have trodden that path but at least the SP is still low and they now have saleable product coming on stream.

bigadaj

I think that posters comments are quite useful, the board is dominated by many people with reasonable investment experience and any first timers may be put off. Fos posts are a bit silly and reactionary but they do provoke criticism and more importantly explanation of why his opinions are wrong, which is useful for newbies and I'm sure many might be put off by phraseology, acronyms and other things that are quoted.

Small mining and oil companies are a punt, and should be looked on like gambling, its not an investment but can be enjoyable, so long as people don't get carried away and only have. A tiny proportion off their funds in them.

atush

FOS is quite funny to read at times, he does need a chill pill though.

vectistim

Interesting (OT), both of the previous two comments have assumed A Flock of Sheep is a flock of rams, for some reason I'd assumed a flock of ewes.

atush

I just use he as standard if I don't know.

What I do know is that FOS is a Nervous Nellie, the worst kind of newbie investor who panics and tries to explain daily movements. but it can make for entertainment.