Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Tom Winnifrith BearCast 20 September - sticking it to Big Dave Lenigas

By Tom Winnifrith

20 September 2015 05:58

More:

In today's podcast I cover Big Dave Lenigas, LGO Energy (LGO), Sefton Resources (SER) and Pinsent Masons and Boohoo (BOO), ASOS (ASC) and the unsustainability of super normal margins at a general level

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

Bobby Chariot

21 September 2015, 02:22

Cheers Tom, just bought BOO last week as the trend looked good. Down 4% after your bearcast!

Agreed that ASOS is well overvalued, had a good ride shorting this down from 3000p recently.
Drunken Sailor

21 September 2015, 08:54

Tom,

It is hard to see how in the current environment Ritson could have performed any better operationally. However what Big Dave would have done, and Ritson can’t do, is ramp the shares before the interims and got a fundraise away to see the company through the troubled times ahead while oil prices remain depressed.

As with all Big Dave companies, the biggest asset is Dave himself and his ability and brass neck to go out and raise money early rather than waiting until the situation is desperate. Without Big Dave the best that can be hoped for is massive dilution at an awful share price a few months down the line and maybe a recovery back to where the price is today in a few years if the oil price picks up enough before the company goes bust entirely.