Africa Oil (AOIFF) a great value at current share price or a bear trap?Reviewing some of the valuation models of Africa Oil put forth by Travis way back in March of 2012, it would seem that with the latest ”booked reserves” and potential of equivalent discoveries in several basins, yet to be explored – the current share price would seem to be a bargain and the market seems to be severely underpricing this security. Am I missing something, are there some apparent risks that justify this valuation that I am not considering?
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I feel the same way! Can’t figure out why the share price keeps on dropping with apparent good news. The only reason i can see is the dropping of the oil price and perhaps that ‘IS’ selling cheap oil on the market. I have been holding on to my stock for some time now, but it is getting harder to look at the red ink each day.
AOIFF has been on a steady decline for some time now, what drives me almost crazy is the amount of drop each day, mostly 3 to 5 percent consistently for a week or so.
I keep telling myself that the price gets manipulated so as to make us exit the stock and soon after it will go up again. But really have no idea, just speculating.
Would be great to get some more input from Travis or some other guys invested in AOIFF.