By Cynical Bear | Thursday 24 November 2016
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.
By anyone’s standards, and this team’s standards are pretty low, it’s been a shocking week with a winding-up petition being issued against the team leader and general inspiration, Worthington (WRN) and player manager, Senterra Energy (SEN) having to ‘fess up to a failed deal with its share price collapsing as a result. How did the rest of the team get on!?
The short answer won’t surprise you but let’s take a closer look. As before, for ease of reference, I have kept the same categorisation as before – the Suspenders, the Zombies and the Disappointments – and have added any recent news from the last couple of months
Worthington (WRN) – as already mentioned, the winding-up petition was issued on Monday. The nails are being readied for the coffin although, as Worthington is contemplating Judicial Review, the cremation may be some time away yet
CIC Gold (CICG) – suspended since November 2015 (a year ago!) pending the RTO of Gobi Minerals. No material news.
Silver Falcon (SILF) – big news here! Although suspended since December 2015 pending the RTO of the Fintech business, LIME, the deal has been called off…...after 9 months. It remains suspended as it looks for other deals. For the love of God!
Falcon Acquisitions (FAL) – suspended since June 2016 pending the RTO of a connected business in the OTT space, Quiptel. Big news here too though as it has decided to piss away £500,000 on an acquisition of a start-up. Whole thing smells a bit wrong and I’ll be writing separately on the topic.
RockRose Energy (RRE) – suspended in September pending some half-decent looking oil assets. Could this actually end up being a good business on the Standard List? Doubtful, particularly as Andrew Austin is involved.
Papillon Holdings (PPHP) – announced potential RTO on 9 September with a previously failed business in the betting space! Suspended and no news since.
Levrett (LVRT) – announced potential RTO with biotech business, Nuformix, on 16 September. Suspended and no news since.
Opera Investments (OPRA) – after two failed efforts at an RTO, it announced a new deal on 23 September to acquire certain projects from Kibo Mining (KIBO). Share was suspended as a result and it will be moving to AIM.
Sad news, I know as the Sub-Standard Shockers X1 will be losing one if its stalwarts. The AIM admission document is due by 30 November – we’ll see!
Wow! Eight of the current team suspended in total; no wonder the team’s struggling in the league.
Senterra Energy (SEN) – as already mentioned, it has now come out of suspension so “progresses” to the Zombies. Share price down 40% to 2.5p as a result of the Oasis deal falling over. One has to wonder what Optiva is doing if they can’t even make its own investment vehicle work - why would one go to them for advice?
Challenger Acquisitions (CHAL) – with nothing happening here for months and the share price dripping on down towards 13p at the moment, I’ve moved this down the league from a mere Disappointment to a Zombie, until proved otherwise. It should all come to a head soon anyway with the balance sheet getting out of control and it clearly getting tougher to raise funds.
What happened to the additional £100,000 of funding this month, Mark?
Vertu Capital (VCBC) – the first of the Malaysian connected companies. Listed in January 2015 and although it actually announced an acquisition in April 2016 (subject to diligence) there has been no news since. Lobster pot.
DaVictus (DVT) – the second of the Malaysian connected companies. Listed in January 2016 and no news since. Lobster pot.
These two Malaysian entities remind me of the Asian guy who held the world record for standing still in the 1970’s until someone stabbed him in the back as they thought he was a mannequin. I do wonder whether these two companies are actually breathing.
Vale International Group (VALE) – only joined the Standard List in September 2016 but as suspected, it’s an absolute lobster pot and there has been no news.
As before, that just leaves four squad members on the pitch with any ability whatsoever.
Upland Resources (UPL) – I’m promoting this from the Zombies as there does seem to be some actual signs of life here. Current share price at 1.44p.
Toople (TOOP) – hmmm, one more month of limited news and it may be demoted as could easily be in the category above but I’m still feeling generous. David Breith’s business in the mobile space. Listed in May 2016 at 8p. Limited news since and share price drifting downwards to 5.5p.
Bluebird Merchant Ventures (BMV) – some excitement about potential new capital being injected at a premium although nothing heard since 11 October. Share price not doing much at 2.125p.
Highland Natural Resources (HNR) – still the “star” of the show in terms of bulletin board interest. All 30 million Diversion warrants have now been exercised so the business has plenty of cash for now. Share price struggling to reach its heady heights of an earlier life and is currently at 35.5p as, funnily enough, it hasn’t got much to get excited about.
So there we have it – yet again, a shocking performance, I feel for the PIs that have been stuck in one or more of these stocks for months, or even years.
With Worthington and Opera potentially leaving the team shortly, new blood is required and a perfect team-mate joined the squad recently.
Golden Rock Global (GCG) came to the Standard Segment of the market on 31 October and fits the bill perfectly.
An offshore company; only raised £1.6 million; is focussed on the exciting Fintech sector (join the queue!) and the share price has got way ahead of itself at 28p giving a market cap of £4.5 million. Hmmm, shouldn’t it actually trade at a discount to assets so nearer 10p say??
Anyway, welcome to the squad, you are much needed, which is saying something!
As I always say, and I will repeat, this Standard Segment is giving the Main Market a bad name and it is suckering in ordinary unsophisticated investors who believe that it will be actually a better investment due to it not being on AIM.
The reality is the opposite.
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