By Lucian Miers | Tuesday 25 October 2016
Disclosure: The author has a short position in one or more of the shares mentioned. 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.
Unlike Cloudtag (CTAG) which has to conjure up real sales from somewhere or face share price obliteration by Chriistmas, Highlands Natural Resources (HNR) which is also run by charlatans has an easy life.
The energy sector is well suited for extravagant jam tomorrow pronouncements like the one we saw last week in which positive results were claimed for the in house appraisal of the testing of some obscure technology sold to the company by its own directors in return for warrants that have already been flogged.
No numbers, no dates no sales projections and hey presto around £4 million on the market cap. Not bad for a nothing announcement.
Eventually, of course, whatever the sector, the fate of all charlatan companies is guaranteed. Worthlessness always gets found out in the end and this foreign business which has no reason to be listed in London other than to tap naïve UK investors in a loose and forgiving regulatory environment will not buck the trend indefinitely.
I lose no sleep from being short because in the end Highlands will simply run out of other people's money and the share price will crater. The emperor's new clothes may fool some Bulletin Board mugs but even they will see the light eventually.
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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