Having written a piece just three weeks ago about Highlands Natural Resources (HNR) and the likelihood of it needing more cash very soon, todays news of a placing didn’t really come as much of a surprise to me.
If I say so myself, I called this brilliantly as a sell then as a buy then as a take profits. But where does Highland Natural Resources (HNR) stand now? I chatted briefly to the team at the show and they were brimming with confidence but for more detail over to Robert Price.
Two weeks ago, following the results of Highlands Natural Resources (HNR) I advised getting out at 23.75p as the bubble appeared to be bursting (see HERE). Well done if you did as you could have got back in at 12p last night as part of the announced funding via PrimaryBid but the question is: should you have done? Hmm, I’m not quite as tempted as Tom sounded HERE but let’s take a look at the details.
No need to wait for the weekend. This PrimaryBid offering kicked off at 4.30 PM today and will close at 9.00 PM tonight or when £2 million is raised - the placing is in Highland Natural Resources (HNR). On the one hand we have been uber critical of Highland on the other this financing package with a massive private equity injection looks transformational. Worse still boss Robert Price has just called me and now I find it hard to be hostile to the man as he was quite charming. I am almost tempted to go for a small flutter as I shall explain below, but make no formal recommendation - here are the bare bones:
I’m no longer surprised how stocks that, in my view, are inherently worthless or at least worth a fraction of their current share price can stay at such a high price or so long but I think the bubble is bursting, and gravity is taking hold, at Highlands Natural Resources (HNR) with a shocking set of results released yesterday. Let’s have a look at the “highlights”!
Orderly business succession is what we like as investors. Folks get old, folks move on and want fresh challenges but well run companies plan for this and do not make a drama out of what does not need to be a crisis.
The management of Highlands Natural Resources (HNR), notably Paul Mendell, still refuses to answer serious questions about their CVs or about RNS Statements made by Highlands that are simply not true and that silence should make any sane speculator run a mile. Meanwhile it continues with the pretence that it has found an institutional investor who should by now own 30% of the company but in fact owns no shares. Confused? Let me explain.
Back on 15 June Highland Natural Resources (HNR) announced what was in essence a covert placing with a spiv share flipper. It was dressed up as something rather different but the failure of that spiv to issue a TR1 shows this laughable pretence up for what it is.
Tom Winnifrith and I have covered Highlands Natural Resources (HNR) in some detail as the list of disgraceful shenanigans gets longer by the day - the latest revelations at the weekend were a killer and anyone holding after reading THIS is now demonstrably insane.
Every once in a while a share price goes ballistic for no discernable reason other than retail investors firmly grasping the wrong end of the stick. Invariably reality soon sets in, and although timing is a bit hit and miss, shorting such situations almost always pays off.