By Tom Winnifrith, The Sheriff of AIM | Friday 16 December 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.
Now for the drill down in detail on the horseshite served up by liars and fraudsters Cloudtag (CTAG) and morally bankrupt Nomad Cairn in yesterday's disgraceful RNS - the overall take is HERE. Let us now look at the new distributor in the UK and Europe Nemesis. It will work alongside Second Chance which used to have an exclusive deal and was guaranteeing 2016 sales of $5.2 million, It has delivered nil. So will Nemesis do any better?
Cloudtag fesses up:
Nemesis is not committed to make any sales under the agreement and there is no guarantee that the Distribution Agreement will lead to any sales.
Exactly. So the value of this deal is er? Swet FA. But how big could it be? Well I pout it to you that in a best case scenario the answer is tiny.
For starters, Nemesis has a tiny floor space which indicates that it does not distribute large volumes. I quote from a press release by the owner of its warehouse/head office
Regeneration specialist St. Modwen has agreed a 10-year lease for the 7,291 sq ft unit at Great Western Business Park, Worcester with technology company Nemesis GB. A leader in the importer and distributor of mobile technology equipment and parts for the vehicle manufacturing industry, Nemesis has relocated from nearby Pershore.
Okay so how big is 7,291 square feet. Think of a Premier league soccer pitch and then divide by ten. Yes by ten. So Nemesis must house its staff, have toilets etc and so the amount left for storing product (what a distributor does) is really very small indeedin an area about the size of the penalty area at Old Trafford.
But at least Nemesis will only be pushing the Cloudtag product - which may or may not exist - right? Er no. Here is a release from just over two years ago:
Finnish mobile wellness technology company, PulseOn, is proud to announce its partnership with Nemesis Distribution as a key foundation for the upcoming launch of its ground breaking and innovative consumer sports heart rate monitor in the UK. The PulseOn uses accurate heart rate data to help users manage their training programmes more efficiently in order to reach their full fitness potential. PulseOn’s wrist-based optical heart rate monitor will be available in the UK October 1st 2014.
PulseOn’s heart rate monitor incorporates the very latest in optical heart rate monitoring with sophisticated algorithms to allow users to accurately monitor their heart rate throughout training events and beyond, without the use of a chest strap. When combined with the free smartphone app on iOS and Android it allows its user to understand the effect of training on their body and optimise their training. PulseOn will tell them what their heart rate means and transforms the information into easily actionable feedback, whether they are an athlete or a beginner. It will also be there to coach them towards their next fitness level and motivate them to train better.
Aha. Well that product has really taken off thanks to Nemesis has it not? Er ..no. There is now no mention of PulseOn on the Nemesis website. Nemesis will in otgher words take on any new launch. Try everything once except buggery and folk dancing, even trying to flog Cloudtag's non existent producrt. That's the way.
And so to Companies House where my first alarm bell is that this company exists only because HSBC provides invoice discounting ( very expensive debt) and thus has a charge over nearly all of its assets. Not a good sign. Then we see the last accounts ( to September 2015). Debtors ballooned for reasons that will not be explained in a company claiming smaller company exemption. And that allowed the company to book a profit of c£284,000. Why - for a company using invoice discounting is there no high bank debt number against that debtor book? These od accounts - I can't wait for 2016 - show that this is a small company.
Will Nemesis make a blind but of difference to Cloudtag? Almost certainly not. Did it cost Nemesis anything to sign such a wooly deal? No. Does it care about the deal? Er..it is not even mentioned on its website as a brand being pushed or a partnership. Nemesis cares THAT MUCH.
And Cairn signs off on this junk? Shame, shame, shame on a Nomad now vying wirth Roland "Fatty" Cornish for the title of London's worst. Meanwhile shares in Cloudtag remain a sell at any price. Fair value is still 0p..
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