By Tom Winnifrith | Wednesday 12 October 2016
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.
Concepta (CPT) has announced that it has issued 464,674 shares following the exercise of warrants - something we warned you about last week. That brings in £34,851 which is frankly neither here not there. Around 10% of that cash came from the exercise of warrants by FIML and my pension fund. Neither are selling at anything like this price although the shares are well up on a 14p offer share tip.
What is just amazing is that the 631,333 remaining unexercised warrants, for which valid exercise notices were not received by the Company by 7 October 2016 have expired. We remind you that the strike price was 7.5p and the shares now trade at 18.5p -20p.
So investors holding those warrants could easily have exercised and sold netting a collective profit of c£70,000. that was free money, free profits on offer and some idiots just turned it down. That is truly amazing is it not?
Why are we not selling? Because we expect news very shortly starting with the announcement of the first My Lotus sales in China but that will be just the beginning. With a market cap of sub £20 million there is huge fundamental upside here and short term excitement from a pregnant news pipeline.
The target to sell on this website is 28p plus and we won't be waiting long for that.
This article first appeared on the Nifty Fifty website which Lucian Miers runs with Tom Winnifrith & Steve Moore. To access the website ahead of the next share tip from Tom & Steve and ahead of a new shorting idea from Lucian GO HERE
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