It has been a little while since I last commented on Simec Atlantis Energy (SAE) and highlighted all the red flags of the investment case. Today’s news that the Uskmouth Planning application has been withdrawn is perhaps surprising at first glance, but in my view, it is fully explainable using a single word – cash. Are we final reaching the death throes of this dreadful company?
An update today from Simec Atlantis Energy (SEA) showed the sort of unbridled and wholly unjustifiable optimism one would associate with a Norwich City supporter discussing who his team would like to draw in next year’s Champion’s League or my own hopes of hooking up with Britain’s favourite chanteuse, Ms Cheryl Cole. Only at the end of its statement does it mention the problem that makes it uninvestable.
Peter Brailey has explained numerous times on this website why Simec Atlantic Energy (SAE) is a zero in waiting. Its technology is suspect. It is year away from ever generating cash in a best, wildly optimistic, scenario and it has some ludicrous mini bonds which it cannot hope to repay where repayment is coming up fast. But to add to its woes it is now going to be screwed by the Government of land which, by 30 yards, I call home, Wales.
Simec Atlantis Energy (SAE) rather surprised a few investors with an after-hours placing RNS yesterday at a whopping 48.4% discount to the closing price of 4.85p just minutes before. Of course to any regular reader of this site it should come as no surprise whatsoever - I have been warning for the last 2 years! But there is worse to come in my view.
The weather this week provided a little reminded to me of 1976. Of course back then, before global warming started, it was far warmer – in fact we had 15 consecutive days from June into July with over 90 degree temperatures (32.2C in new money). This week of course provided me with the opportunity to once again recall those days, if only for a short while. I also looked at Simec Atlantis Energy (SAE) RNS on Friday and noted the share price getting hot also.
Simec Atlantis Energy (SAE) published its 2020 year end accounts today. Even with a post reporting date cash injection from its running death spiral, the auditors (Ernst & Young LLP) very heavily qualified the accounts, stating an opinion on the use of going concern basis of accounting could not be formed, due the number and level of uncertainties the company faces.
I gather that it is ouzo on cornflakes time at Peter Brailey’s this morning as Simec Energy (SAE) shares have gone into meltdown on the back of a disingenuous but unmistakeably bad statement – something clever old Peter predicted HERE. The stench of David Cameron, Lex Greensill and Tory sleaze is at the heart of the problem.
I always read an operational update from an AIM listed company with interest. This week has been busy so it’s only now I have had the time to draft some thoughts on Simec Atlantis Energy (SAE) operational update issued on Wednesday. I always have in mind three reasons for a trading update - “The Good, the Bad and the Ugly”. No prizes guessing my conclusions on this one.
Simec Atlantis Energy (SAE) updated the market yesterday that the Uskmouth Power Station planning application has been “called in” for determination by the Welsh Government. That in itself is bad news for shareholders as this will cause delay. However that is far from the entirety of the bad news.
