Trades and observations from a British contrarian stock investor

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Tuesday, January 4, 2011

Xcite Energy - the madness of markets

I have realised how fickle the markets are today! So with an upward revision of Bentley oil reserves and signing of a production rig due any day, I am seeing that Xcite shares are currently down over 4% at 362p. I presume some investors are piling out to buy into other stocks that have been tipped in the press over the weekend and no doubt the market makers are playing their usual games to fill their boots with cheap stock before the RNS's. I reiterate from today's RNS, "....with the intention to update the information in the February 2009 Competent Persons Report potentially enabling a reserves report to be issued in DUE COURSE" i.e. we will have an update in days not weeks! I guess patience is a virtue and some investors don't have it!

Comparing the Market caps of some oil stocks underscores my point:

Xcite Energy (160 mm barrels+) £579m

Desire Petroleum (0 barrels) £128m

Rockhopper (170 mm barrels) £965m

Keep the faith XEL investors and buy on weakness!
Posted by Contrarian Investor UK at 11:26 AM
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1 comment:

  1. AnonymousJanuary 4, 2011 at 8:41 PM

    The iii XEL bb today was a nuisance. Only good info posted was about the upcoming OilBarrel conference on the 13th. Nothing but bickering and foolish panicky children needing reassurance at every turn, misreading/misinterpreting the RNS statements to mean that the world is coming to an end. Sometimes I want to take a giant eraser and scrub the forums out for all the pandemonium they cause but sadly there is often good info to be found which gets lost in/among. Some good technicals and write-ups, which is the main reason I visit.

    XEL is hopefully in for an exciting 2011 and is a real gem of a stock to hold imo. Nobody is getting my shares until someone sticks £10+ on the table.

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