I have been bearish on AIM-listed Cloudbuy (CBUY) for an age and you have been repeatedly warned and warned. Today it has proposed to depart the AIM Casino to save money... and because it can’t raise any more cash. Oh, and business isn’t so good. And most of the directors are off too. Time for an Ouzo: it is thank you and goodnight...
In my last update on the sorry saga of AIM-China Filthy Forty play Walcom (WALG), I commented that having been teetering on the brink for an age….I wonder if the company will survive into the new year. This was in the light of a bank loan due for repayment in the second week of this month (and no cash to pay it with)...
No publicity is bad publicity, goes the old showbiz saying but for Neil Woodford any publicity is bad publicity these days. However, no news is bad news for him, and that brings me back once again to his disruptive medical play Verseon (VERS) which must be teetering right on the edge by now.
As if the poor shareholders in AIM-listed Vast Resources (VAST) had not suffered enough! Today the company announced that its Manaila mine in Romania which has been on care and maintenance since December 2018 will not now be reopened as planned this month (with just two working days left!!), in order to reduce costs. Oh, and there is a full corporate restructuring and refinancing underway.
According to Cynical Bear, Neil Woodford’s Woodford Investment Management once held 24.9% of Halosource (HAL), when the shares were around 3.63p - and Invesco Perpetual (Woodford’s former stamping ground) held a further c.19%. Of course, failure after failure and emergency bailout placing after emergency bailout placing will have taken their toll. But even back in August Woodford held 27.3% (having bailed it out yet again). Now the company has warned that it is having a spot of bother raising cash – and that no cash by the end of December will mean a trip to the corporate undertakers. So Neil isn’t up for bailing it out this time?
AIM-listed former rob Terry darling Imaginatik (IMTK) has announced that the deal to bring in Vin Murria is all off. The Nomad, finnCap, is – as it promised it would – resigning as from the end of today and the shares have collapsed by (so far) 76%. What’s not to like?
ShareProphets AIM-China Filthy Forty play Walcom (WALG) – one of just seven remaining – has announced that its largest customer still hasn’t ponied up the wonga. There’s a surprise…..not! Also unsurprising is the share price reaction, where the bid price has dropped to just 0.25p. If you wanted a bag of crisps, you’ll have to settle for Tesco Value ones now.
On 28th June ShareProphets AIM-China Filthy Forty play (one of only seven remaining) Walcom (WALG) announced it was having problems getting its biggest customer to pay – but it was ok because it expected to cough up by 10 July. Well, here we are and surprise, surprise……it still hasn’t ponied up the wonga. The company issued an RNS entitled “Customer Payment” (if that is not misleading, I don’t know what is!)
AIM-listed Rurelec (RUR) released what appears to be a mixed bag of news this morning, although on closer reading it looks all bad. The board has its work cut out once again as liquidity appears to be heavily constrained and there is limited certainty over further debt repayments. In other words, it is yet again running very close to the wire: will this latest crisis be enough to finish off the company?
ShareProphets AIM-China Filthy Forty member MoneySwap (SWAP) issued an after-hours RNS last night which looks to suggest that the cash is fast running out. As one of my seven stocks to get suspended where shareholders could lose 100% from last November, might it be that kill number three (and F40 kill number 21) is not far off?
It will come as no surprise to readers of ShareProphets that main market listed Goldenport Holdings (GPRT) is to leave the LSE, as announced this morning. Shareholders are set to lose everything just as predicted (see HERE, HERE, HERE and HERE) but amazingly the shares are still trading pro tem. You can still get your bad of crisps….or perhaps just a couple of penny chews, for the shares have collapsed (so far) by 70% today, to 1.5p mid. So there is another 1.5p to go….
It comes as no surprise that (now ex-) AIM-listed DQ Entertainment (DQE) had a spot of bother in finding a replacement Nomad after the previous incumbent Allenby walked the plank last month, having given notice and warning that if new directors proposed by EGM requisitioners were appointed then it would resign forthwith. But now we have what looks to be the final nail in the coffin as the company has admitted that it can’t find a Nomad which will represent it and it is to be booted off the Casino as from this morning - a nice early morning execution. I hope that any readers with a holding managed to get out, even if only with one of Tom Winnifrith’s bags of crisps: it is better than nothing.
This morning AIM-listed Rurelec (RUR) which is rather fighting for its life announced that it has bought itself a little more time in the form of a new short-term secured (over all the assets of the company) loan of £850,000, which has already been fully drawn down. This will be repayable at the end of June and will repay the last short term secured loan from Radix (of £600,000), associated accrued interest as well as provide working capital.
Yesterday saw AIM-listed DQ Entertainment (DQE) release a trading update on its 75%-owned and Bombay listed Indian subsidiary, DQE Entertainment (International) Limited. It was well received by the market and DQE saw its shares advance by some 45.5%. That’s handy for anyone looking to get out, such as anyone with a loan in default being forced to sell their shares (before the Nomad, Allenby, quits in just over a week).
Following the appearance of AIM-listed DQ Entertainment (DQE) in our Red Flags at Night series regarding the resignation of its Nomad and other matters, slipped out at no-one-is-watching o’clock on 3 Feb, we had a Director Shareholding RNS yesterday afternoon. It is a complex announcement, but it stinks. Certainly it did not give any reason to question the wisdom of the Nomad, Allenby, to step down on 22 Feb. The shares remain a big sell even after the collapse of last week.
Update: the company re-issued the RNS of last night at 7am this morning, with the correction in the title that it's Nomad was resigning. Now it could be that someone at the company thought it a bit of an oversight, or perhaps the Nomad (Allenby) insisted on the correction. Either way it would appear that any attempt to bury the bad news has backfired in spectacular fashion: the shares are off by 45% last seen.
ShareProphets AIM-China Filthy Forty member Northwest Investment Group (NWIG) announced the departure of a NED, Mr Ka Ming Wong, yesterday afternoon. The thanks were effusive, but some shareholders might take a different view, given the lamentable record of this investment company which doesn't invest. It simply pisses the cash away on plc costs and administration.
The ex-Lenigas stock that is AIM-listed Inspirit Energy (INSP) issued its full year results to 20 June 2015 on the day of its reporting deadline of New Year's Eve. Just the timing of the RNS during no-one-is-watching o'clock week is a Red Flag in itself. But quite how it has taken six months to collate its numbers when there are no sales is a mystery to me - that is another Red Flag, but there are plenty more. For a start, there is a change of auditor but a glaring error and a few other matters leave me reaching for the bargepole even before looking at the balance sheet.
This morning AIM-listed ZincOx Resources (ZOX) produced a calamitous RNS. A failed funding round (for $5 million) means that 90% of its erstwhile wholly-owned subsidiary ZincOx Korea Ltd is to be handed over to Korea Zinc or – at Korea Zinc’s request – a loan by Korea Zinc will be converted in an eye-watering debt-for-equity shareholder dilution to leave ZincOx shareholders with just 10% of the equity. And there could be more dilution as ZincOx Korea is loss-making: any further funding to keep the lights on at the plant will come from Korea Zinc which will increase its ownership in proportion. Even after this ZincOx looks to be in dire straits and is now considering delisting. In short, this is a trainwreck. Time for one of Tom Winnifrith’s bags of Walkers – or will it be just Tesco Value?
I suppose that a profit warning should actually involve profits but unfortunately for SeaEnergy's (SEA) beleaguered shareholders that seems to be a long way off. With the low oil price it goes without saying that companies with exposure to black gold in some form or other are going to be suffering in the current climate. But SeaEnergy – as discussed HERE - could and should have been almost bullet-proof. Having had cash and readily realisable assets worth millions, the company has spent the cash and stood by while the value of the holding in Lansdowne Oil and Gas (LOGP) has dwindled away. It now finds itself reliant on the bank and having to go round with a begging bowl in order to keep the lights on.
Oh dear. Oh dearie, dearie me. AIM-listed, but suspended pending clarification, Paragon Diamonds (PRG) has released an update on its financial position. It reads very badly, and rather suggests that a previous RNS was, ahem, not wholly aligned with the truth. But the financial position of the company looks terrible. Will Paragon soon be a goner?
AIM-Listed Seaenergy (SEA) announced its interim results to 30 June yesterday morning. Having previously highlighted a few missed opportunities HERE (and that is being uber-polite) I see some pretty horrible numbers. I note that Tom Winnifrith called it a Bargepole stock in yesterday's Bearcast, but stopped short of calling it an outright sell. I hesitate to disagree. Er…..no I don’t. I say it is a sell, a bag of crisps job.