By Tom Winnifrith | Sunday 30 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.
Another day and another bailout placing from Golden Saint Resources (GSR) leaves it with 8,822,256,582 shares in issue. Floated at 10p, the shares are now 0.02p but how close is it to the record books?
From memory Motive TV got to c24 billion shares in issue before the fat lady finally sang. For a worthless penny stock that is surely the all time record. It is like one of those performances from the East German women's track team of the 1970s that just looks like it will stand unbeaten for years. But in terms of the current era of AIM is Golden Saint the current reigning confetti-issuing champion?
If it is not, it will be before long. The latest placing of 2.6 billion shares plus another 351 million to pay off consultants took place at 0.021p and raised £553,484 before expenses. Call it £500,000 net. The last placing (at 0.0425p) in November raised £400,000 gross so its fair to assume that this company is spunking c£80,000 pcm and almost certainly it would be more if it cleared some more of its liabilities.
This placing game is with the usual garbage from its worthless assets: bulk sampling, Forage consultants, miniscule amounts of gold, yadda, yadda, yadda. The fact is that this company will not generate a cent of free cashflow from its worthless assets EVER. And thus, when it runs out of money again in September, it will have to issue even more confetti and almost certainly at an even lower price. So how many shares will there be in issue by Christmas? 12, 13 billion? 15 billion? Who knows.
That MTV/East German female sprinter record is going to fall one day and Golden Saint has to be a prime contender to be the company that achieves it.
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