Minding the London Stock Exchange’s Business
Independent and Fearless Financial Journalism Funded by Readers
Even a few of our detractors have now come around
Hello, Share Takers. It’s possible you’re in light-hearted mood after taking the advice, over the last few months, of various writers on this glorious website to buy shares in oil companies. They’ve since soared on the galloping price of oil and gas. So allow me to be frivolous while the markets are closed and look at some of the superstitions that can govern the buying or selling of shares.
Shares in Tomco (TOM) have continued to race ahead even thought it is teetering on the brink of bankruptcy as those who broke insider dealing laws by forward selling last week’s placing, which had to be scrapped after it emerged the company had lied to investors, scuttled to buy back. That offers an opportunity and so I can reveal…
Following the shocking revelation that Tomco (TOM) had lied to investors it has pulled the £1.5 million placing at 0.4p announced on Wednesday leaving it running on fumes. In fact, I’ll wager you a line or two of finest Colombian marching powder, direct from the City’s grubbiest dealing floors, that it is technically insolvent. Yet its shares, returning from suspension, have rocketed ahead to 0.775p, a gain of c75%. The FCA should be hot footing it to the offices of broker Turner Pope without delay. I smell crime.
Oh dear,. Oh dear, this looks very grim for Tomco (TOM). Gary Newman slated the heavily discounted bailout placing at 0.4p announced first thing. But it seems that Tomco has been telling porkies and at 2.52 PM its shares were suspended pending an announcement. What will that say “ We are scumbags and fucking liars!” would be my suggested headline.
When you combine one of the least successful AIM listed natural resources companies with probably the worst bucket shop brokers around, then you rarely end up with a good outcome.
