Warning to ALL retail investors who are at risk of being suckered into Spitfire Oil (LON: SRO). This company is currently being targeted by pump and dumper Mr Paul Johnson, so I thought I’d nip this one in the bud and place on record some salient facts and what is about to happen. I’ve not had time to write up Paul Johnson much, exactly for what he is; A corporate bullshitter extraordinaire.
Mr Johnson ramps on twitter and chat forums par excellence. Those who are clued up remember the utter cock that he and his Brummie cohorts were spouting many moons ago on Metal Tiger , ’10p!!! Regency Mines ‘coal of the century’ GGP ‘there’s gold in them thar hills’ etc. His credibility and track record of ramping and selling into the liquidity/rises orchestrated by him and his cohorts such as Andrew Neal, Andrew ‘CALAMITY’ Bell and every known lying, ramping pump and dumper should be researched. His twitter feed is a litany of horse shit, specifically designed to ramp stocks/companies he has bought into.
THE £2,000,000 PORKY
A quick look at his tweets should be cross-referenced with a read of the balance sheet. Paul is trying to infer that Spitfire Oil have £2M in cash. This is bolloxs and Paul knows it. What he deliberately fails to disclose is; That was the position of Spitfire some eleven months ago. SRO have circa £7,000,000 of losses. Fast-forward to today and that is likely to be closer to £8,000,000 of course that doesn’t take into consideration the capitalisation of costs, some £2,500,000 that has been pegged into the profit account The cash burn on them over the last eleven months will be considerable. Bearing in mind they burnt through close to £500,000 in six months, I reckon that they will have about £1,100,000 of cash & cash equivalents left, burning between £60,000-£80,000 per month. My figures are based on their figures. Not on ramptastic horse shit tweets. And we all know how expensive an AIM listing is. The shares are worth circa 3.5p at cash value which you should remember is degrading by £60,000-£80,000 per month. You can knock off about 0.27p for every £100k of cash burn. As for Spitfire you can see from the March 2017 RNS that they are now talking Mining! Chairman Mladen Ninkov states, “The focus of the Company now firmly lies in the hard rock mining sector” Well what a coincidence. Enter stage right, Mr Johnson…
The Modus Operandi is to buy into micro c(r)ap’ mining stocks, taking a notifiable position. He then begins to increase that position and starts to exert ‘influence’ upon the target bargepole company. Eventually either he or some of his proxy puppets inveigle themselves onto the Board. All the while ramping and briefing/leaking how great they will make the company. The usual well known paid for scumbags are used, Vox Markets, Share Talk, Momentous Events and SharePickers all paid to promote the ramptastic horse shite. Of course placings occur and warrants are pocketed, not too mention the director fees and expenses. The idiots buy into the ‘jackanory’, the SP rises then the fun begins…… To give you a flavour of the fantasy company’s that are ramped, I’ll put a few market tickers here. #MTR #RGM #CON #THR #GGP #PML #RRR #MNRG…. To list but a few.
One may wonder just how it is that Paul Johnson can find such ‘world class’ Lithium, Gold, Cobalt, Silver, Copper, Tungsten, Lead, Coal, Zinc, Lignite, plays etc. He’s a genius is Paul a real Warren Buffet. He knows ALL the ‘super dooper’ gilt edged mining plays. Surely it’s only a matter of time before the head hunters of BHP Billiton come knocking? A man who can find such mining riches must be worth his weight in Rubies & Pink diamonds? There’s only one problem. Whatever this shyster massively over promotes never ever produces any thing other than cash for him, and his minion’s. (OK he’s worth his weight in Lignite) The great ‘movers & shakers’ never amount to so much as a hill of magic beans’. Of course the truth of the matter is that these are piss poor micro cap miners and nothing other than ramptastic diatribes of ‘Verbal Methane’, ad infinitum to ‘work over’ gullible investors into buying, while PJ and co’ eventually sell up their shares and exercise in the money warrants, hastily sold or forward flipped. The mugs are left holding the Confetti, emphasis on CON. Exit stage left Mr Johnson…
The nonsense currently being spewed out about 500 million tonnes of lignite is a deliberate attempt to confuse and befuddle the mug punters. Just where is the £100’s of millions, if not BILLIONS, coming from to extract 500,000,000 tonnes of lignite from the barren wastes of the Salmon Gums Lignite Deposit in Western Australia? Come Speaky Uppy Mr Johnson! Tell us all where the cash is coming from to convert Lignite, which is a poor brown coal, into oil? Never mind the cost of the mine….. Whose going to build and pay for the railway needed to transport it? And lets not forget the carbon emissions conundrum that the, as of yet not built, processing plant will have to deal with. It’s a fantasy. Another ‘Johnson Jackanory’ Alchemy at its worst! READ THIS
Spitfire Oil are massively ‘illiquid’ you buy in you are automatically locked in at a loss. You try to trade out on a 10% spike you get way below the spread. They are already authorised to issue 100,000,000 Ordinary Shares of which 25,884,001 Ordinary Shares have been issued. That means another 74,000,000 can be issued at any time. Sooner or later Spitfire will place stock and warrants, Mr Johnson will take part. The modus operandi of this corporate P&Der never alters. So beware of the promises of ‘lignite riches’. The history of Mr Paul Johnson is littered with alchemy! Not one company has ever gone on to produce anything other than dilution, placings and failure for those daft enough to buy into the ‘Johnson Jackanorys!’ Of course they have produced plenty of Wonga for Paul Johnson….
Spitfire Oil? Bargepole! 3.5p and decreasing rapidly……