Take a look at that chart! Just what can stop Forte Oil’s momentum at this rate. The stock has risen from about N22 just under a year ago to N220 today. That is a remarkable 1000% increase and it looks unstoppable at the moment. There are very few stocks in Nigeria and indeed the world which has risen this much in such a short period of time. Even Google, Microsoft, Amazon, Dangote Cement couldn’t match this feat.
I recall when the stock was still at about N80 or so I wrote that it was over priced. Who would have thought it would get to N200 let alone cross it. Certainly the fundamentals still do not justify the share price as I have written severally but you can’t take away the fact that it is a highly rewarding stock in terms of market appreciation. You might look at technicals analysis to find a reason for the dramatic rise but I doubt you will find it.
You might chastise me for being a naysayer again but this is looking more like a ponzu everyday I look at it. When a share price keeps going up without a fundamental basis it means the market is basically taking a bet on price rather than on the growth of the company. So, I buy at N150 and sell to you at N160. You buy at N160 and sell at N170. Another person buys at N170 and sells at N180…it keeps going on till the support is pulled from under the rug.
I do hope this is not the case though.