Having covered Leni Gas & Oil recently with a sell/short call rewarding followers with over a 30% saving/gain in a matter of days I now revisit the company today. I watched a precedent set with heavy news flow aligned to a high impact PR drive. Updates were bandied about like confetti, read my piece here:
We now share some analysis on the more recent behavioural traits of the company, social media is hotting up with a chain of tweets both from the head honcho and also the company’s own twitter feed . This leads me to believe they are banging the drum again and not without reason. I’m sure all punters see the potential of both the goudron and trinity-inniss field with it’s Improving cash flow from increased production.
All good things come to an end and whilst the company has no option but to speculate over it’s long term upside potential the retail punter has to manage their expectations. Leni Gas & Oil’s head honcho has stated there is no headroom for a placing and whilst through some admission they have already pointed towards funding the potential acquisition, by way of partial revenue based cash flow together with the YA global facility I argue the company may need a little more to develop both fields. These few basic principles have lead me to speculate a fund raiser could be coming.
Today the whisper grew stronger after a city source (Mr X) reinforced some of my own thoughts, It has been suggested the old placing veteran is out around the city plumbing the fund managers.
We suggest you treat this as mere speculation based through conjecture, (with a pinch of salt if you were) I value the integrity of the source thus can’t be any more a matter of fact. After applying my own layman principle’s coupled with Mr X insight LGO looks a sell.
Keep your pecker up…