Trades and observations from a British contrarian stock investor

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Monday, January 24, 2011

Final tree shake on Xcite?

Looks like the foolish are bailing out of Xcite into Xtract energy (XTR) this morning. Lots of bulletin board posts about Xtract but I think I'll stay put in Xcite.

Why would I move my precious £'s out of Xcite when they have a 200 million barrel field in the North Sea (possibly up to 500 million barrels) which will go into production this year at a rate of 60,000 barrels per day! Whereas with Xtract Energy you are not going to get close to this for years. Plus it's not a core holding for Walter Energy (who recently acquired Western Coal, the previous owners of Xtract) since they are a coking coal specialist. I would bet on a divestment rather than a big investment by Walter.
Mad, but what does Contrarian Investor uk know! Classic "pump and dump", be careful out there!
Posted by Contrarian Investor UK at 12:13 PM
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