Commenting on stocks and shares can at times feel like a character from a Hans Christian Andersen tale, one in particular, “The Emperor’s New Clothes” springs to mind every time I read or see the utter shite constantly pumped on social media by various shysters on both sides of the fence, corporate and retail.
It doesn’t take a genius to see the metaphors from fairy tales played out on City of London listed companies by traders and corporates alike who rely on ‘greed’ to blind ‘common sense’. The target being lumpen-proletariat small time mug-investors or as I call them ‘the meat in the liquidity sandwich’. The goal is to push the ‘tall tale’ using various ‘ruses/ploys’; such as ‘behind the scenes briefings’ to certain well known P&D merchants who take a position as well as small fees with ‘warrant packages’ then go out heralding the news of riches beyond your wildest dreams….
Which brings me on nicely to Nu-Oil & Gas (AIM: NUOG) the current nudge, nudge, wink, wink is in full flow not least on the BBs and twitter sphere. NUOG are a shell they have absolutely no value whatsoever other than there listing value. The old Board of Directors are being paid out, then kicked out, with a new team set to come in post GM ratification. The ‘new deal’ is deliberately structured in such a way that a select group of Novum placees (no more than 4/5 individual connected investors) are taking 1,000,000,000 shares of stock at a 50% discount to today’s SP, while a newly formed corporate entity holds £2,500,000 of loan notes (again at a 50% discount) to flip out as and when you ‘the meat in the liquidity sandwich’ are buttered up into believing in ‘Fairy Tales’. Mugs buying in at 0.075p are paying a 50% premium to that placing and loan note package. £3,000,000 will be flipped out into the orchestrated rise. A rise that will be predicated on a ‘hope value’.
If by now you haven’t worked out the implications then let me spell it out. You’re starting a race with a handicap. You can never beat the corporate flippers because they have a 50% head start with access to the news flow. If today you were 20% down on your stake bought at 0.075p they would still be 30% up. It’s a race you can never win.
The company holding the £2,500,000 loan notes are C4 Energy Ltd. That paper company is the brain child of one Marco Fumagalli (Continental Investment Partners, Sound Energy, Coro, Echo) and Mr James Parsons (JP) (Sound Energy, Echo energy and Coro). Both are connected at the hip as is Mr Andy Dennan proposed director NUOG, (current CFO & Director CORO, Sound Energy Holdings Italy Ltd, Alpha Growth Plc, Baron Lux LLP). I know them all, have met them, broke bread with them and talked all things O&G with them. They’re decent people in their own way. But as corporates go I wouldn’t trust them with a ‘birds nest’. They are ‘corporate bastards’. NU-OIL, at this stage of its evolution, isn’t about finding oil or gas in Cuba, Mexico or some far field of a foreign land that’s forever England, it’s about corporates playing the system using a tried and tested method to make money regardless of finding oil or not.
All of the above have made substantial sums of varying degrees, of a reputed £200,000,000 million generated from the Sound, Echo and CORO ventures. The largest slice of the pie going to the moneyman who finances the companies: Fumagali/Continental and their various offshore exotic mechanisms.
The ownership of C4 Energy wasn’t disclosed in the RNS of 2nd October 2019. That omission was deliberate. It was a calculated ploy to set the NUOG shareprice to spike in an attempt to replicate the fantastic gains of the early days of Echo Energy. Pump and Dumpers were briefed to scream it from the rafters. It ultimately failed.
Sadly all three companies Sound, Echo and Coro ‘ultimately’ bombed. Now that isn’t a critique of any wrong doing. Far from it. In the real world the best any investor can ask for is a company does what it says on the tin: i.e. They get their licence, and drill it. All 3 companies have done exactly what they said they would do. They have ran and continue to run within the rules and regulations. On the whole their biggest failure has been geological and it’s geology that determines financial success or failure for shareholders. However it’s not the geology that determines success or failure for corporates it’s selling heavily discounted stock into ascending share prices.
The whispered Cuban licences for NUOG are a fantasy. One only needs to do what Liargas did with his ‘Fairy Tale’ and speak to the British Ambassador to Cuba who explained that O&G exploration in Cuba was 15-20 years away due to the Geo-political situation vis-a-vis the USA. Exit stage left Liargas from Cuban oil into cannabis.
Based upon historical performance of those now taking control of NUOG if it runs true to form then it’s nothing more than a corporate carve-up pre change of control…….
So, the questions are many. Too many for this blog. But questions will be put to those running the show and answers sought next week. Such as: Since when did an Oil & Gas CEO (JP) decide that issuing vulture finance packages and organising a select placing at ‘mates rates’ to mates, become more productive than finding oil and gas?
N.B: Kejserens nye klæder) is a short tale written by Danish author Hans Christian Andersen, about two weavers who promise an emperor a new suit of clothes that they say is invisible to those who are unfit for their positions, stupid, or incompetent – while in reality, they make no clothes at all, making everyone believe the clothes are invisible to them. When the emperor parades before his subjects in his new “clothes”, no one dares to say that they do not see any suit of clothes on him for fear that they will be seen as stupid. Finally a child cries out, “But he isn’t wearing anything at all!” The tale has been translated into over 100 languages.