By Steve Moore | Tuesday 7 March 2017
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.
Having last month failed to ignite the share price with a ramptastic “blur engaged with Top 100 UK law firm” announcement, blur Group (BLUR) has had much more success today – on the back of a “blur engaged with Global Electronics Group” announcement, the shares currently 200%+ higher at above 20p.
It helps that, unlike with the law firm, the ‘news’ hadn’t effectively already been announced some weeks earlier. The latest announcement including that blur…
“… has entered into final negotiations with a global electronics group for a multiple six figure on-boarding programme across three territories. That programme, if successful, could lead to a multi-year, multi-million dollar roll out of blur's Cloud software and managed services. blur has worked with this group for over a year… blur expects the negotiations to conclude in the forthcoming weeks.”
You what?!? “Entered into final negotiations”? - this is not even a deal currently!, why has it been announced at this point?!?
“Multiple six figure… across three territories… could lead to a multi-year, multi-million dollar roll out”. Hahaha, pure ramparoonie – emphasise size of customer, but offer vagueness in value? Check, suggested international dimension? Check, suggested further “multi-million dollar” potential? Check.
Of course, “could lead to a multi-year, multi-million dollar roll out”, means it could not – and why has the announcement even been made at this point? So the company can potentially announce ‘news’ twice again?
The desperation to announce likely reflects the length of time it is taking the company to negotiate such business (“has worked with this group for over a year”) and that it is rapidly heading towards cash crunch ahoy!
The shares spiked to more than 18p in December before slumping back – and I consider this latest spike, on the back of a ludicrous announcement, a further selling opportunity for any holders as we head towards a bailout placing being required. Roll Call of Shame: blur & CEO Philip Letts, brokers N+1 Singer & PRs Yellow Jersey.
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