Ascent Resources AST – change of direction?
One of my most badly timed shares buys of the year ‘Ascent Resources’ is starting to look look it’s fortunes are about to change…
I bought AST early this year after watching it for some time. In mid February they announced that they had successfully completed the first phase of operations on the Pg-11 well in the Petišovci Project in Slovenia. It was announced that the results significantly exceeded the companies expectations. For all intensive purposes the project was now substantially DE-risked and It looked like an excellent opportunity to buy in… So I did.The SP initially spiked right up to nearly 10p before being hammered by short sellers, a few world disasters and an announcement of a “5p ‘Institution only’ placing,”. This sent us all the way back to 5p per share. Completely oversold in my opinion!
Things have been looking up for Ascent over the last few weeks. In March they successfully raised 17m in funding to further develop their ongoing projects. Controversially this was raised from Institutional investors rather that being made public. The shares were placed at 5p. Yesterday it was announced that all resolutions had been passed and that 240,000,000 Placing Shares have been allotted and will be admitted to trading on AIM at 8 a.m – Today.
In Mid March it was also announced that two directors had increased their stakes.
Yesterday it was announced that second stage of drilling at the Petišovci Project had commenced. The second RNS announced that “Investec Asset Management Ltd” have increased their holding to 5.46%. – All Encouraging signs.
In addition to my current holding I placed a ‘Buy bet’ today. The risk/reward ratio is looking excellent!
All my spread-betting is done through IG.www.igindex.co.uk/?QPID=46523987&QPPID=1
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