Enjoy your summer !

“Where has all the mxo ramping gone from last month. Wait a minute it went to afpo. Another bunch of spiked pi’s , so what stock is next?”

I am not surprised in the slightest but my first post on AFPO and one of only a hand full this year was greeted with insults and abuse…

Was it because the post was incorrect? Well if we look at the “investors” who pumped MXO or reacted rather negatively we might see. On the 13^th of July I posted that the “pump” crew had sold MXO and has moved onto their next target…Funnily enough the same “pump” crew that told me that people selling at 4.5p was stupid, or that I was clueless. Since then they have become rather quiet about MXO and the MXO price has fallen……

They are also the same “pump” crew that have been ramping AFPO and have been selling in their droves whilst pumping away. They have already started the next pump.

So was I wrong?, NO.

So why the response….Maybe in the same way that when you tell a child off for being naughty, their first response is often one of denial. Maybe it’s because they are so incredibly insecure they need to response to every single negative comment. Maybe it’s because they are bullies.

Whatever the reason, if you post anything negative that they deem threatening it’s the same comments.

I am Clueless, It’s down to Envy, I must have made a loss, etc etc. It’s all rather juvenile to be honest. Occasionally you get a true comment about how it’s all about buying low and selling high, where they singly fail to realise that buying low, pumping a share, selling and then watching it fall back is the very definition of a “pump”…

Equally, investors shouldn’t be concerned if you get a negative comment in a negative market. We could all just say positive things about companies, but this would only lead to PI’s losing lots of money. If something is negative then say it’s negative, if something is being ramped then admit it’s being ramped, if it’s positive then say it’s positive. If you say this many times in the hope of changing market sentiment then it’s a problem.

It’s the same mentality of MP’s that claim £500 for a 5 mile bike ride, or investment bankers that sold the rather dodgy CDO bundles, or even the tried and trusted second hand car sales men.

I am more than happy making money in AIM in a rather more moral way.

I actually quite liked the MXO deal, far better than its Mexico licenses and said so (although I also said that I wouldn’t buy any yet).

Equally I quite like the AFPO deal. The problem is that we don’t have a clue how much profit will be made for AFPO, its margins on the revenue might be 2% or 50%! Nor have we heard why these hefty margins are going to be taken by middle men and yet the MOU buyers are happy to buy it?, why don’t they just cut out all the middle men and go straight to where AFPO are sourcing the product?. This will happen if AFPO are not adding any value. We simply don’t have enough information to justify a re-rate of the SP IMHO.

Finally not all investors are part of the “pump” crew some are genuine investors in these companies.

You might want to follow the “pump” crew, however for every “pump” that catches and works, there are maybe 2 or 3 that don’t get the traction.

Let’s see which one gets it this time round, maybe EDL, maybe AVP, maybe PEL,  RMP, AVP.

Enjoy your Summer, I know I am !