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Frontera - battle lines drawn as JubCap and Waseem Shakoor stick in the knife

By Nigel Somerville | Wednesday 12 April 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.


It seems that despite bears not being universally popular, I'm not the only one who thinks that AIM-listed Frontera (FRR) is an out and out bargepole stock. In the wake of yesterday's ramparoonie (oops) highly informative RNS, the Twitterspere has seen a few comments - not least of which from Waseem Shakoor and investment house Jub Capital - sticking the knife in. I've no idea whether JubCap is running short positions for its clients or even itself, but its view is pretty clear....

The great Waseem Shakoor joined in the fun this morning with this:

 ...soon followed by this gem from Jub Capital

And challenged that it was talking out its posterior the rebuttal was polite but firm

The LSE BB is full of positives such as that slam-dunk winner “it’ll be different this time”. Right.

Just for good measure, it seems that Waseem Shakoor – just as he did with posts on the LSE CloudTag (CTAG) board – is having his comments deleted in a fit of censorship. That worked really well for the CloudTag bulls….

Shares in Frontera are down 6.2% so far today (last seen). By my reckoning, there is a very long way to go – and Waseem reckons Frontera is the best short on AIM right now. My maths says that Frontera has a gaping black hole in its balance sheet and, with the shares having been pumped higher by a factor of about 4 in recent months, it seems to me that a placing is inevitable. The only question in my mind is whether the discount will be huge or cavernous?

Battle lines drawn, then. Let’s see who is right.


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