By Cynical Bear | Sunday 19 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.
Tom and I have been pretty consistent in our criticism of lifestyle company, Milestone Group (MSG), and although it was touched upon in Friday’s Bearcast (HERE), I thought the ridiculous recent RNS’s required a bit more of a kicking. It is an appalling effort with one sole purpose, to try to seduce new mug punters into supporting this useless company.
Looking at the timeline of announcements, Milestone announced in its final results on 28 February that it would require further funds and I wrote at the time that its cash balance would be pretty low by the end of March.
Since then there have been three absolute non-news RNS’s, two on 8 March and one on 15 March. Looking at each on turn the following has been announced.
First, a joint venture between Nexstar (itself a joint venture) and a new music publishing start-up for a new platform which has one artist on it that no-one has heard of! So Milestone will earn 25% of approximately zero revenue from this – great stuff.
At least it gives the CEO, Deborah White, the chance to warble on about blockchain technology – please, give me a break.
The second one on 8 March was even stranger namely the launch of a white label of Alchemy TV for Apprenticeships 4 England.
Milestone has two different initiatives, both of which earn bugger all revenue; a TV channel called Alchemy and a relationship with Apprenticeships 4 England. So obviously Milestone decides to combine the two. I’m sure that the various young plumbers and electricians up and down the country are thrilled with the idea. Absolute baloney.
The final buzzword heavy announcement came out on 15 March with a strengthened joint venture with Black Cactus.
It had to admit that “at present this additional IP is not revenue generating” but it did enable Ms White to use the word “blockchain” six times, so that must add some value to the business surely?
If one was under any doubt about the merit of these announcements, it is clear that none contain price-sensitive information hence the standard market abuse directive wording has not needed to be included. They are mere marketing puff and it’s hard to foresee any of them generating substantial revenues.
I imagine that every week, Deborah White gets together with its Nomad, Cairn and its broker, Hybridian, to work out what nonsense it can put out to try to encourage mugs who know no better to buy the stock to keep the price up while it is trying to raise funds or just to boost liquidity to facilitate flippers dumping stock in advance of the announced placing.
I wonder what’s going to come out this week, perhaps something combining its ephemeral flagship initiative, the Passion Project, and bitcoins!
I’m pleased to note that it’s not really working. Liquidity remains relatively low and the share price is drifting downwards, closing on Friday at 0.235p….although I still think it should be trading below 0.1p.
My advice – stay clear.
Never miss a story.
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