Solo Oil: My best performing stock so far.

15th Feb '17 by Lord Zion

4 comments 6662 reads

I'm quite new to all of this, having gone from zero interest to large investment back in June (Brexit gains!). At the time, I seemed naturally drawn toward oil and mining, I guess because they seemed the most attractive in terms of explosive growth. Of course, the more I read on message boards and the like, the more I realised that they could be an excellent way to lose lots of money very fast.

So I hedged my bets a bit, putting smaller pots of cash into select companies, covering potential losses by planting larger amounts of cash into funds, keeping some aside to plant into Boohoo, Fevertree, Burford, Gear4Music and a couple of others that have done really well. If only I knew what I was doing, I could be pretty good at this!

Even though a couple of the above have shown 60%+ gains in a short period, my best so far has been Solo Oil (LON:SOLO). Since investing a very modest sum (just £500) back in November, it has shot up 150%ish. I've poked around these message boards to try and find news, information, thoughts on this stock but have come up short (pun?), which I'm quite surprised about.

I guess, being new - or at least novice - this is both exciting and nerve-wracking. The value of shares can go down as well as up but, as I can only see good news (http://www.proactiveinvestors.co.uk/LON:SOLO/Solo-Oil-PLC/), I'm trying to resist the urge to cash in the profits and let this winner run. I wondered if there were any other Solo Oil holders and, if so, what your thoughts were?

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gus 1065

16th Feb '17

Hi Zion.

Welcome onboard. Not a follower of Solo Oil (LON:SOLO) , although I do hold several O&G and Resource sticks ranging from the tiny to the massive. As a self confessed "newbie" you're possibly enjoying the rush of success from rising oil prices over the past year or so but beware things can go down just as quick as they go up. It can be an exciting ride (I had a token punt on Frontera Resources (LON:FRR) that is up over 150% in the last two trading sessions) but not for the faint hearted. Usual caveats of not investing more than you are willing to lose particularly apply here (and personally I would never use leverage in O&G). Once I have had a good run, I will often look to top slice some of my investment to re- coup the initial capital and let the balance roll forward but it is all a matter of personal choice.

I note Solo Oil (LON:SOLO) has just announced a small placement at 0.5p which possibly explains the 4% fall yesterday and it may come down further today.

http://www.investegate.co.uk/solo-oil-plc--solo-/rns/placing-of-equity-and-tvr/201702160700070172X/

There are other active discussion boards on specific stocks such as iii, LSE and advfn that you may want to peruse, but they come with a major health warning as the less scrupulous use them to ramp and de-ramp stocks to suit their own positions. The usual PI emotions of fear and greed seem especially virulent in this sector.

Good luck,

Gus.

Lord Zion

Thanks for the comment, Gus. Everything I have read indicated that I had arrived at a very different trading time than normal and it has been some ride! Thankfully, the early heady rush of it all has calmed down a bit and I no longer feel like I need to be buying and selling every day to be part of it. I must admit, now I have stopped selling the second I see any kind of profit, I am left scratching my head a bit as to the best time to take profit. It seems to be the one area of investing that is sorely lacking any kind of information.

Appreciate that link, too. I was scratching my head a bit at the drop yesterday but could find no news. It was what prompted my posting so, although you aren't an investor in Solo, you have provided the info I was after. Looks like a good site, too, so shall be bookmarking that one.

I've visited a few other message boards but they seem to fall into the same trap as message boards in general: full of snarky know-it-alls who thrive on telling people where they are going wrong, rather than help them to go right. This is the only message board I stalk as it seems to be full of fine folk and not every thread unravels into pettiness.

Thanks again Gus.

Hi Zion.

You're welcome. If you are not already a user, I would recommend Malcolm Graham Wood (aka Malcy)'s daily O&G blog as a good resource. It used to link onto Stockopedia but doesn't seem to any more. I visit it regularly for both general market commentary and specific comments on companies I am looking at. He's a bit of a "marmite" commentator - some rate him, others claim he is simply a paid cheerleader for the industry. I suggest DYOR and form your own view. Link is here:-

http://www.malcysblog.com

I did a post a couple of weeks back on his 2016/17 "Bucket List" selection which might give you some ideas for further research.

In terms of the other boards, it's wheat and chaff time in my opinion. There is a lot of vitriol and pettiness as well as utter cobblers spouted but there are some good contributors that I rate and look out for. It's a small minority but there are some folk out there who seem knowledgable and genuine - it's just a question of finding the good ones learning from your mistakes (as the hedgehog said climbing off the hair brush ....)

Best,

Gus.

Ken Lowes

I only have three points to add to what Gus has said which are simple but common mistakes.
Remember if a share falls by ninety percent and you buy it you can still lose 100% of your money.
Watch the buying and selling spread, you can end up losing as much as 10% or more on the spread alone and finally with small caps be careful of the amount you can trade Look at the bottom of the Profile Box and you will find the free float if this percentage is above 65% and the Market Cap above £25m you should be Okay. Making a profit is one thing but turning it into cash might not be a simple as pressing the button, especially if the market or share is falling. Good luck
Ken.

Solo Oil: My best performing stock so far.

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Lord Zion

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