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The Markets
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Energy

Is Sound Energy share price now near ‘maximum opportunity’?

The exploration stock is a favourite for private investors, but, it has been on the back foot, down about 40% in the past two weeks.

If you’re a shareholder in Sound Energy PLC (LON:SOU), down about 40% in the month to date, and if you’d say your mood is somewhere between despondent and depressed – then, according to chief executive James Parsons, you might find ‘the point of maximum financial opportunity’.

Sound Energy has been a standout favourite among private investors over the past eighteen months or so, with successful wells at the Tendrara project in Morocco driving significant ‘multi-bag’ gains on the AIM market.

But, in recent weeks the explorer has been firmly on the back foot following a disappointing exploration well in Italy and a less than perfect result at the Sidi Moktar project in Morocco.

Directors in Sound Energy, including Parsons, have subsequently dug into their own pockets, picking up shares in the market and increasing their holdings.

And, on Wednesday Parsons shared (without giving any specific context) a somewhat interesting diagram with his fledgling Twitter following – which presumably comprises mainly Sound and Echo Energy investors.

pic.twitter.com/KKi7BYQ5Pc

— James Parsons (JP) (@Real_JParsons) July 12, 2017

It is a fairly simple representation of a cycle many small cap punters and arm-chair behavioural phycologists will likely be familiar with.

Nonetheless, it remains to be seen whether or not Sound Energy’s recently downtrodden share price is nearing a turning point.

The Sound Energy chief executive created his Twitter account (@Real_JParsons ) last month.

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