Wednesday 15 August 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
MBL Group – part one: notice to seek cancellation of AIM admission… though potential shareholder return hit
Shares in AIM-listed Haydale have been a one-way bet to financial destruction ever since it conducted a placing at 120p (a discount to the then share price of some 32%). In the wake of a trading warning and the stepping aside of its CEO, the stock has now crashed to just 50.5p – the stock gave up a further 14% on Friday alone. The problem is that it needs to get another bailout placing away.
AIM-listed Haydale (HAYD) has issued another RNS Reach announcement to add to the one released on June 19th. But we all know (don’t we?) that RNS Reach announcements are effectively marketing ploys, not hard news of cashflow. And we also know that Haydale has to get a placing away in order to get its accounts signed off as a going concern.
You have been warned (see HERE) that AIM-listed Haydale (HAYD) is a nailed-on certainty for a discounted placing. We also know that the last placing was at a mammoth 32% discount (at 120p!) and the CEO has recently stepped aside following a (lack of) sales warning. Since then, the shares have been a one-way bet southwards, and we reckon a placing at 50p was on the cards.
AIM-listed Haydale offered a terrible trading update the week before last, announced the CEO was moving aside and we know it needs to raise cash. In that context, the ramptastic pre-placing RNS Reach of Tuesday and a sub-£9,000 director’s-wife’s buy announced on Wednesday would appear to need taking with a large pinch of salt. Last night, at 4.20pm, however, we learnt that Legal & General had been selling.
Yesterday afternoon, AIM-listed Haydale (HAYD) announced a buy by the wife of one of the NEDs. That should be good news, but I see it as bad news - especially as we all know the company needs to get a placing away and has just announced a crap trading update.
AIM-listed Haydale (HAYD) has offered the market an RNS this morning describing “Strong Commercial Progress”. Bearing in mind the profit warning of last week, and the inevitability of another bailout placing one wonders if this marks the appearance of pastures new in the distance, or whether it is just a pre-placing ramp.
I previously looked at AIM-listed Haydale (HAYD) last October (HERE), concluding It may be a great business in the making, but the lack of visibility of earnings (just £6 million over the next 3.5 years) is too thin – profits seem an awfully long way away and the carefully crafted obfuscation in the trading statement makes me steer a wide berth…. Today we got a warning that sales have been disappointing, the CEO stepping aside and cash sitting at £5.6 million. Given that it raised £9.3 million last October (at a 32% discount) one has to wonder how long it will be before the tin is rattled again.
AIM-listed Haydale (HAYD) joined Applied Graphene (AGM) on the heavily discounted fundraising trail yesterday from the graphene sector of AIM (albeit it has other products as well). Not only has it announced its full year results to June, it offered the begging bowl at not less that 120p per share. Given that the stock closed last night at 176p, it suggests that the company was expecting a frosty reception. At the low point the stock was trading down 54.5p at 121.5p before a recovery to 125.5.
Having left a second rate public school in 1984, and having not been attentive in Chemistry at the time, I am fully absolved from not knowing one end of a Graphene molecule from another., as the term was only coined in 1987.
While the daily chart of Haydale Graphene Industries since this time last year has been something of a rollercoaster, the post December configuration here on the daily chart does look very encouraging.
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