I very rarely post about share trading any more. Partly as I have been locked into some poor share choices for a number of years, partly because all spare cash goes on school fees and partly because my day job is now all too consuming to allow for any minute-by-minute study of the markets.
However, one of the shares that I am still in is GKP. This Iraq (Kurdistan) oiler has been happily finding oil on gargantuan scale since 2009. Luckily for me I bought in at 28p some 5 year ago, so even today's 190p is still a good ride.
Tomorrow should act as a big catalyst though. Last year, when rumours of Exxon buying out the company were strong the price spiked to £4.50. Since then it has been held by by a piece of litigation that goes back to the founding of the companies assets in Iraq. Rex Wempen reckons he is owed 30% of the deal and that current CEO Todd Kozel kept him out of it by sleight of hand. Anyway, it seems unlikely he will get that far, but we will find out tomorrow at 10.30 AM finally, after 3 years of the case building up.
If it is thrown out then expect a small rise in the share price (it's up a lot anyway these past few weeks), in the short term but then a big payday when the business is taken over at some point next year. If it goes the other way, expect a 30% drop in price, but a nice entry point, as with the litigation clear, a takeover is still on the cards and buying in at the low point would still make you smart money.
3 comments:
Here's hoping, CU. There are interesting shares: like RRR over the last month which has tripled (roughly).
Always liked RRR - held it years ago. has taken a while to get their JORC's in order though!
Always liked RRR - held it years ago. has taken a while to get their JORC's in order though!
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