NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

Is it safe to buy Baron Oil shares amid the sell-off?

by December 27, 2022
written by December 27, 2022

Baron Oil (LON: BOIL) share price has moved sideways in the past few weeks even as energy prices have rebounded. The stock was trading at 0.142p, where it has been in the past few weeks. This price is about 60% below the highest level in 2022 and about 120% above this month’s low. 

Baron Oil share issue

Baron Oil is a tiny oil and gas exploration company that has assets in Southeast Asia and the UK. As such, the company does not have any revenue for now since it is in the exploration stage of its development. The firm will likely sell its projects once its exploration stage ends.

The most recent interim results published in June showed that the company lost £419k, higher than the previous year’s loss of £117k. This loss was partially offset by a one-off non-cash gain on the disposal of an associated undertaking. 

Its administration expenses jumped to £497k while exploration and evaluation costs rose to £120k. The company has over £2.365 million in cash reserves. This increase was helped by a round of fundraising that brought in £1.5 million. 

Baron Oil is in a cash-burning stage of its business where it is spending money and bringing in nothing. As such, it is a highly dilutive firm. The company raised more money by issuing new 18.9 billion shares. These funds will be used to fund its exploration projects in East Timor and the UK.

Baron Oil is a highly risky company to invest in because of its substantial losses and the fact that it will continue to dilute shareholders in the coming years. Further, there are signs that the post-Covid boom in oil and gas prices is about to end. Therefore, it is relatively risky to invest in such a penny stock. 

Baron Oil share price forecast

Baron Oil chart by TradingView

The 4H chart shows that the Baron Oil stock price has been in a consolidation phase in the past few days. It has managed to move slightly below the 25-day and 50-day moving averages. Similarly, the Relative Strength Index (RSI) has tilted below the neutral point of 50. 

It has also formed a descending channel shown in green. Therefore, I suspect that the shares will likely continue falling as sellers target the next key support level at $0.1165. A move above the resistance point at $0.1600 will invalidate the bearish view.

The post Is it safe to buy Baron Oil shares amid the sell-off? appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Should I buy Intel shares after the current dip?
next post
Helium One share price has a bullish catalyst in 2023

You may also like

U.K. CMA eases stance on pending Microsoft-Activision merger

March 25, 2023

Tether’s Paolo Ardoino says BTC could retest its...

March 25, 2023

Flare price surging as Deutsche Bank failure push...

March 25, 2023

Netflix stock price forecast: BofA sees a 30%...

March 24, 2023

Will TikTok be banned?

March 24, 2023

Huggins sees ‘uphill battle’ for Wetherspoons stock despite...

March 24, 2023

Block share price continues to tumble after Hindenburg...

March 24, 2023

Kaiko: Liquidity situation in crypto “worsening” amid USD...

March 24, 2023

S&P 500 has been falling, but for Euro...

March 24, 2023

SMI index nears correction as UBS stock enters...

March 24, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    Headline Inflation Falls, But Core Inflation Remains Elevated

  • 2

    My Trigger to Enter $VAPR

  • 3

    Multi-Millionaire Trader Explains Why You Should Start Trading With A Small Account {VIDEO}

  • 4

    Scaling Up Tips From A 24-Year Old Millionaire Trader {VIDEO}

  • 5

    Pay Attention to These Stocks

Recent Posts

  • U.K. CMA eases stance on pending Microsoft-Activision merger

    March 25, 2023
  • Do Not Tarry In Eliminating Tariffs and Other Protectionist Measures

    March 25, 2023
  • When It Comes to Big Tech and Monopoly Power: Patience is a Virtue, Antitrust is a Vice

    March 25, 2023
  • Tether’s Paolo Ardoino says BTC could retest its all-time high amid the banking crisis

    March 25, 2023
  • Flare price surging as Deutsche Bank failure push markets down: here’s why

    March 25, 2023

Categories

  • Economy (706)
  • Editor's Pick (304)
  • Investing (1,982)
  • Stock (9)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick