Aminex - small cap penny stock worth a punt?I don't normally take much interest in oil and gas companies, but one that caught my attention recently is Aminex (AEX) an "oil and gas exploration and production company with two operated discoveries in Tanzania" - purely because of the awful chart.
The chart has been awful for a long time but is now showing signs of life. It therefore has become what I consider to be a "risky punt" share that I am willing to put a small amount of cash into in the belief that it has a good chance of moving a lot higher in the not too distant future.
Take a look at the miserable 10-year chart - but notice the recent pick-up in volume
Production is expected to begin in early 2015 using a new pipeline being constructed for the Tanzanian government funded by our inscrutable friends the Chinese. The Tanzanian discoveries have an estimated mean gross resource size of 1.2 TCF and Aminex’s Tanzanian acreage position is estimated to have a total of 11.5 TCF in mean gross resources, it is also close to some of the largest discoveries made in this exploration and production province.
It is also worth noting that Malcy a respected oil blogger considers Aminex worth watching -
The shares, having been a very poor performer have picked up recently and whilst only one to watch at the moment should definitely be on the radar screen- see full write-up here : http://www.malcysblog.com/2014/07/oil-price-premier-san-leon-range-resources-aminex-sundry-wood-group-ithaca-hurricane-and-finally/#sthash.lLLdpidZ.dpuf -
Personally I consider that it might move at any moment so I have picked up a few, more cautious punters might want to wait until it gets back above 1p or the 200-day moving average- I will probably pick up a few more when the chart moves above recent resistance levels around 1p.
2-month chart - the price bottomed out back in April at under 0.6p and has been moving slowly upwards since