Gulf Keystone Petroleum bulletin board ramping
Over the last few days, thanks to stock like Gulf Keystone Petroleum [GKP], and to a lesser extent Chariot Oil and Gas [CHAR], we have seen what is a perfect example of bulletin board ‘ramping’.
Small investors frequent bulletin boards such as iii, ADVFN and many others looking for advice on what, when and how much to invest in a stock. But they fall, victim to ’share rampers’. These guys spend hours talking up the prospects of a particular share like Gulf Keystone Petroleum in the hope that misguided investors, who have not done their own research, get caught up in the hype and start buying shares in a panic.
The result of this ramping process in one share, such as Gulf Keystone, then infects all the other shares in the same sector, it’s like a bulletin board fever. Overnight the boards go from the half a dozen or so messages a day to complete pandemonium. On closer inspection of the actual trades going through during this process, we find they are from small investors jumping in at a price that is already too high. A classic rookie mistake. Take care.
Since Friday morning a small group of bulletin board gurus have been frantically trying to talk the price up beyond 100p. As a virgin trader I prefer to ignore the bull**** and look for real news about a stock. At the end of the day after all the ramping subsides so will the price. You decide when a stock is at a good price to buy or not, don’t make expensive decisions purely based bulletin boards they can be a shark pit.
Now to put my comments in perspective, I think [GKP] is a great stock and I bought some myself last week at a higher price than I would have liked. The point I am making is not that it is a hyped share; it is that rampers serve no purpose but their own.
A Virgin Trader
So the sP rise is all based on bullshit then? Nothing to do with the massive oil find? Well well, no wonder you’re a virgin…
virgin trader Reply:
October 14th, 2009 at 11:50 am
Alibi,
It seems that you my friend did not even read the article in your rush to put me down.
Have another read and you will see that the article is not about whether GKP is a good share or not. Yes I do think it is a good share as it happens, but that was not the subject of the piece.
Of course the share price is not all based on bullshit and I did not say it was. Next time read before you shout it will save you a lot of wasted energy.
A Virgin
Hi Virgin Trader,
A better example would be the case of Amur Minerals and its 400% or so increase about 6 weeks ago. This led to a posting frenzy regarding the next Amur and suddenly the name Regency Minerals appeared as if by magic over night. The following morning it rose around %0 in minutes, only to fall back minutes later.
GKP are probably sitting on more oil than BP’s much heralded find about 6 weeks ago and as such the sp has a way to go yet, and if you can’t see that you either a fool or have not done any research, although those who feel that investing at the current price will earn them x10 that amount in a short space of time are sadly misguided.
Paddy hi,
It seems some people have been quick to bite my head off having read what they wanted to hear rather than what I actually wrote.
At no point did I say GKP was not a good buy, in fact I have some shares myself, I only wish I had bought sooner.
My point was about the risk to virgin traders like myself of panic buying based on nothing but bulletin board comments, I was not commenting of whether gkp or any other stock was a good or bad buy.
It is very easy when you read bulletin boards to get carried away by other people’s enthusiasm.
It seems to me that research, patience and more research is what it is all about. Oh and some very good timing.
Virgin
Virgin Trader hi,
I agree with you. Bulletin boards can be good for additional research and opinion but there is also a lot of ‘buy buy buy’ rubbish that you have to sift through first.
Stewy
Me too.
I think Gulf Keystone is a good share in the longer term and it is good to see what other people think via the BBs but ramping is a real problem up and down.
M
I’m with you GKP and CHAR were ramped through the roof friday.
They have no shame.
wesT
And you my friend come across as the rampers arch rival…the Deramper. Before knocking the virtues of posters singing the praises of GKP you should do as you preach and go and do some research about GKP. The price of GKP does not require talking up to get above £1.00. It will get there and a good way past all by itself based on the fact that they are sitting on billions of barrels of oil just in case you or anybody else reading your silly article doesnt know.
p.Lord,
My commenting on the antics of certain posters on BB’s has nothing to do with whether I think GKP or CHAR are good shares or not.
As it happens I do think GKP is a great share and yes I have done my research. So next time you should actually read the article properly before you go jumping to conclusions.
virgin
Good article mate. Yes KGP does look like a good share but, some of hose BB guys really piss me off.
They shout anyone down who does not agree with them.
stan
Unfortunately there were a lot of burnt fingers yesterday at CHAR. Last minute panic buyers taken in by the rampers. It can be a hard lesson to learn.
animal
What a giggle! Rampers getting hot under the collar because the virgintrader has said the emperor has no clothes.
If the Rampers were serious and professional investors (which they are not) they would be aware of the legal risks of misleading the market for which there are serious penalties.
But those who don their dirty macks and sunglasses and creep incognito, not wishing to be recognised as they enter into the sleazy bulletin boards have themselves to blame. Like live peep shows in Soho bulletin boards are mostly for jerks who don’t want to put in the effort to find true love. Bulletin boards are sort of financial girlie magazines.
But please don’t complain too much about them – some bureaucrat will come along and ban them and then we will all lose their entertainment value.
The Trader