CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Malcy’s bucket list gets a boost with six new stocks

Portfolio management relies on a spread of exposure on a theme. MalcysBlog.com publishes an annual list of favoured small-cap oil stocks that includes a cross section of exploration, development and production companies that are in geographical locations that are attractive.

Jeremy Naylor @JeremyNaylor_IG
Analyst, London

Publication date : 2018-03-16T13:18:55+0000

Video poster image

Portfolio manager, Malcolm Graham-Wood, has recently published his list of stocks for 2018 and there are six new names. Of the 14 stocks last year, two disappeared; Ithaca was taken over and Bowleven was removed.

Agitation in any portfolio is not uncommon, but when dealing with small-cap stocks, there is likely to be more movement than with large cap portfolios.

Takeover activity in particular is a risk, despite the obvious benefits in terms of a rise in the share price of the acquired company. Less beneficial to a portfolio is when a company goes into liquidation, or continues to trade under curtailed circumstances, such as when operational performance undershoots expectations.

Small-cap oil stocks that are in the process of drilling represent considerable risk, but that is the point of a broad spread portfolio put together by an experienced portfolio manager. There needs to be just one or two big performers in a balanced portfolio that can carry profit for the failure, or underperformance of many of the other stocks chosen.

Malcy’s Blog has introduced six new companies: President Energy, Trinity Exploration & Production, Eco Atlantic, Echo Energy, Reabold Resources and Savannah Petroleum.

Of the stocks that survived from 2017, Malcy chooses to look at Jersey Oil and Gas, FAR Limited, SDX Energy and Hurricane Energy. Hurricane was a ‘very poor performer’ in 2017, but Wood explains what happened, and why he is pinning his hopes on that particular stock to outperform in the future.

IG will return to the portfolio later in the year for another update.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.