Gulf Keystone does a complete volte face after last week’s sell off – shares up over 50% in 3 days

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Last Friday morning Kurdistan focused oil explorer Gulf Keystone Petroleum hit 141p as the euro zone crisis rumbled on. It is now up 40p to 216p. A tidy 53% profit for those brave (or foolhardy!) enough to buy at the lows.

In common with many other AIM and small cap oil and gas stocks (Bowleven, Xcite, Gulfsands, Heritage) the price has been steadily walked down over the last few weeks as institutions and hedge funds have provided the initial downward pressure on prices. The falling oil price in May and June has been the supposed trigger behind the selling. Throw into the mix margin calls on CFDs and spread bets and stop losses being triggered and you have an avalanche of selling and lack of buying liquidity. Bargain time as we said last Thursday! See

With the eurozone debt deal announced at the end of last week and a resurgent oil price (back to $100 a barrel) the buyers have returned with a vengeance!

Anticipation is rife ahead of the Gulf Keystone AGM on 19th July in Paris that new information will be released to the market. Certainly with a 23% rise today, and big buys flooding in, someone is hoping for major news on either its Shaikan drilling campaign in Kurdistan or even back to the takeover rumours which drove the shares to over £4 in February.

When it comes to the private investor favourites (GKP, XEL, RKH, DES, FOGL) it is often a stampede of selling on the way down and then the herd turns and you get a stampede on the way back up. Who next? 

Contrarian Investor UK

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