Our recent coverage of AIM Bulletin Board Moron darling MySQUAR (MYSQ) HERE and HERE should leave you in no doubt that this is a piece of crap heading for 0p. At the heart of the issues are the related party deals conducted with other Schaer companies which explain most of the "sales" MySQUAR reports. Earlier toady we ran a piece which exposed the dirty business practices of Schaer when he used to operate in the USA, as you can see HERE. Now for part two which shows what an A grade shyster the man is, another reason to exit this stock ASAP before it goes tits up.
Our recent coverage of AIM Bulletin Board Moron darling MySQUAR (MYSQ) HERE and HERE should leave you in no doubt that this is a piece of crap heading for 0p. At the heart of the issues are the related party deals conducted with other Schaer companies which explain most of the "sales" MySQUAR reports. Does Schaer walk on water? Er...let's look at his CV.But before we start I notice that he surrendered his US passport in 2015. I wonder why?
Of the original 40 AIM-China companies we identified as our ShareProphets Filthy Forty, the steady attrition has seen that number whittled down to just 17 companies. The period either side of the reporting deadline for calendar 2015 numbers (30 June) saw further departures, but last year’s interims deadline saw a queue for AIM’s Death Row develop. How are we looking this time?
As expected it was announced this morning that ShareProphets AIM-China Filthy Forty play GTS Chemical (GTS) has had its listing on AIM cancelled after its shareholders passed a resolution to depart the Casino. This was always a foregone conclusion as there was a (vast) majority shareholder calling the shots, but it marks the twenty-second Filthy Forty departure from the world’s most successful growth market out of our original cohort. Shocking.
Approaching two months on since our last update and another ShareProphets China AIM 'Filthy Forty' company has followed Geong International and co in 'Geong, Geong' and then gone - and another has announced its proposed departure...
It seems that Yougov, Mori and whatever else the pollster are called these days have a thing or two to learn from ShareProphets polling. They keep on getting it wrong, but our readers responded to the question of how many delistings and suspensions were coming on the ShareProphets AIM-China Filthy Forty over four weeks from 17 June and half of respondents said two or three. So far, it is bang on. Mind you, there are still a few days to go.
Three strikes and you’re out: ShareProphets AIM-China Filthy Forty Eastbridge Investments (EBIV) – the former China Wonder and then Quihang – announced the resignation this morning of its Nomad, Northland Capital Partners, with immediate effect. The shares are consequently suspended, and if no replacement is found within a month then it is lethal injection time. Mind you, there is a rather more pressing deadline in ten days, in that Eastbridge will be given the boot anyway if it can’t fulfil its investing policy as an AIM investment company by then. Since that was reliant on some hare-brained plan to raise more cash, that surely will now not happen. In short, Eastbridge is toast.
The race to see which of the twenty remaining ShareProphets AIM China Filthy Forty companies clocks up a suspension/delisting is hotting up as we enter the final furlong. Yesterday saw the loose horse of Grand Group (GIPO) – a non filthy forty runner but an otherwise well qualified AIM-China play nonetheless – cross the line first with a suspension as it can’t get its accounts out on time. But with a surprise late run GTS Chemical (GTS) now looks clear of the field as they head for the line after announcing plans to delist in August, subject to the forgone conclusion of a vote at its AGM.
I previously highlighted that a good few of the twenty remaining ShareProphets AIM-China Filthy Forty faced a reporting deadline of Thursday this week, 30 June. In honour of Royal Ascot we ran a poll which showed that readers of ShareProphets reckoned on two or three suspensions/delistings to come over the next (now) just under three weeks. The race has now entered the final three furlongs…how are the runners and riders looking?
This morning saw a most interesting “Holding(s) in Company” RNS from Red Flag strewn ShareProphets AIM-China Filthy Forty play GTS Chemical. Now perhaps all is completely above board and we are looking at an unfortunate coincidence. Or perhaps the company has just announced that its CEO has been offloading shares. A clarification is surely needed.
As you might expect from a man on cold turkey in the nicotine department I am not in a good mood. Send me an ars-ish tweet and you are blocked, call me with a daft conspiracy theory (flip flop take note) and I curse you. I comment en passant on the Horse Hill ramping and it is ramping by David Lenigas and others. I comment on 88 Energy (88E) and on Tertiary Minerals (TYM), on Frontier Resources (FRI), Outsourcery (OUT), GTS Chemical (GTS) and Magnolia Petroleum (MAGP). And I discuss a prediction by a Nomad that 250 of the 1000 companies on AIM will disappear by Christmas so allowing me to retire which I shall do.
Capitalised at £70 million GTS Chemicals (GTS) has seen its shares more than double since its IPO on August 1 2014 and the stock is up 9% today. But this company is drowning in red flags. In a detailed podcast I list almost a dozen major red flags, just for starters, and explain why the shares are a sell at almost any price.
In Part 7 Graham Chester looks at the city’s cut when it comes to listing a China play on AIM and wonders whether it is good value for money – or, indeed, whether the financial due diligence process is protecting investors or just part the City’s stock promotion machinery.
In part 6 of this series, Graham Chester takes a look at the share-price performance of the remaining AIM-China companies which have listed in the last five years, and who has been doing the financial due diligence. And remember, these are just the ones which are still listed. Does any of the four Reporting Accountancy ‘teams’ come out of this well, and who is cornering the market now?
ShareProphets AIM-China Filthy Forty play GTS Chemical (GTS) has released a Q3 trading update which is full of unmitigated good news. Revenues up 34% on the same period last year, margins steady, new plant on-stream and more on the way, capacity up, distributors up: the good news is unrelenting. What's not to like?
Phew, what a scorcher! The heat really was turned up on the ShareProphets AIM-China Filthy Forty over the past two weeks. Last week we had one AIM-execution, a suspension (and subsequent restoration) as Vmoto (VMT) announced a transaction which we find less than credible (HERE) and results from Jiasen (JSI) which prompted Tom Winnifrith to present us with a choice that he was a banana or Jiasen is a fraud. And JQW (JQW) had its operations suspended by the Chinese authorities for contraventions of advertising and pyramid-selling regulations before releasing less than convincing interims. This week saw fourteen of the Filthy Forty racing to the line to get results filed by close of play Wednesday so as to avoid automatic suspension, two of which added to the overcrowding problem on AIM’s Death Row as their Nomad quit. Here is the ShareProphets round-up of AIM-China Red Flags served up this past week.
As flagged up at the weekend HERE there were fourteen AIM-China stocks still to report by the deadline of tomorrow (Weds). It is now Tuesday and we have had just three so far- China New Energy (CNEL), GTS Chemical (GTS) and Asia Ceramics (ACHP). More on those to follow. But already we have had another one join Sino-Casino Death Row in the form of Camkids (CAMK) (see HERE).
It was a storming week last week on the ShareProphets AIM-China Filthy Forty. But there is more to come, for Wednesday sees the end of the month and the reporting deadline for any company with a half year to the end of June, or a full year to the end of March. So what is there to look forward to?
It would appear to be an interesting exercise to see whether from a charting perspective the AIM Casino China Filthy Forty are indeed as filthy as they appear. So let's start with one which looks to be heading towards death row.