Tom Winnifrith Bearcast: Update from flood central, just when will IQE issue its Coronavirus warning
Nektan (NKTN) has been surviving on fumes recently but its short-term survival is ensured by an announcement this morning with a loan from its major shareholders and although the future still looks tricky, such support is to be applauded as it keeps hopes alive for the wider shareholder base.
No great surprise that Nektan’s (NKTN) CEO, Leigh Nissim, has announced his resignation this week as it must be a challenging and dispiriting role, although one I do wonder when he actually started looking as he’s been in the role for less than a year. It leaves me though with me with a sinking feeling about the PR machines at play at this end of AIM and must also leave Daily Mail readers fuming.
I know I shouldn’t have too much sympathy for the retired bigots that read the Daily Mail but its recent tipping of Nektan (NKTN), which will no doubt cost its loyal readers a few quid, is yet another reason to boycott the rag.
Interims are out this morning for Nektan (NKTN), one of my Sell Picks of 2017, and despite a few green shoots continuing to develop, one wonders how shareholders will fare from the forthcoming funding round and essential balance sheet restructuring.
Anyone who read my sell article HERE and took the brave option of selling pre-final results would have made an instant profit but, to be fair, you wouldn’t have had long as the year-end results came out on 29 December, about an hour after my piece was published. An additional trading update came out this morning though - is that a light at the end of the tunnel I see?
I wasn’t writing for Shareprophets a year ago but I called Nektan (NKTN) as my bear pick of the year on 14 January and it has played out as I envisaged with the share price dropping from its 31 December 2015 price of 130p to 32p today – a drop of 75%; but I think there’s still some way to go as I sense matters are coming to a head.
I first wrote about Nektan (NKTN), my bear pick of the year, in mid-January HERE with the share price having already had a bad start to the year down to 107p from 130p at the close of 2015. Following yesterday’s pre-close trading update for the year to 30 June 2016, it closed down 23% on the day at a mere 47p. Time to reassess my position.
With Nektan (NKTN) announcing its interims to 31 December 2015 this morning, I felt it was appropriate to reassess, and confirm, my bearish stance set out in my earlier articles (HERE).
Following on from my earlier pieces on my bear pick for the year, Nektan (NKTN), comment is overdue on its latest funding round announced earlier this week.
Following on from my earlier piece on my bear pick for the year, Nektan (NKTN), today’s trading update indicates that it is unravelling faster than even I imagined.
With shares in Nektan (NKTN) dropping significantly this week following the resignation of its CEO and the share price now down at 107p and a market cap of £25 million, I wanted to do a piece on why this stock, ignoring the micro-caps, was my bear pick for the year and why I have been bearish on it more generally for a while.
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