Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.
Is Orogen (ORE) the cheapest AIM shell? It could well be. That is why, with the shares at 1.625p mid, FIML - a company owned by the family trust of Tom Winnifrith, has added to its holding. As a reminder...
The price gives a market cap of c£4.3 million. Net cash is more than £3 million. And Adam Reynolds is working hard on a reversal. Most Reynolds reversals whoosh as he does good deals. We expect this to be no different.
Look at other shells and you will see how cheap this one is. Concha (CHA) has cash of sub £1 million and a track record of value destruction and is valued at £5 million! Nyota (NYO) has sod all cash and is valued at £1.8 million fully diluted. The idiot money is heading there and will be lost. The smart money buys a few Orogen and waits. Not for long we suspect!
Our stance is buy at up to 2.5p. We expect post RTO to be selling at 4p.
This article first appeared on HotStockRockets, where two emergency share tips were published yesterday. For those, and to catch the next red hot share tips from the HotStockRockets team out shortly, for just £5 click HERE
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