Now that the acquisition of Bacanora Lithium (BCN) by Gangfeng has completed, many former shareholders will be wondering whether to keep hold of the shares they were awarded in Zinnwald Lithium (ZNWD) as part of that deal.
These days I’m generally not a fan of tiny natural resources companies and tend to avoid them as they rarely attract the positive sentiment and momentum that we have seen in the past, and most will never even come close to actually extracting anything from the ground.
Horizonte Minerals (HZM) looks as though it has defied the odds and will actually manage to bring a large project requiring significant Capex into production, whilst at the same time retaining 100% of it.
It looks as though Asiamet Resources (ARS) has finally landed the deal for the BKM asset that investors have been patiently waiting for, but so far the market seems unimpressed and the share price is trading lower than it was before the announcement.
Touchstone Exploration (TXP) is a company that I’ve covered here several times before and which I believe has a lot of potential, and the latest drill results certainly seem to support that still being the case.
Horizonte Minerals (HZM) is a company that I’ve written about a number of times in recent years, and is also one where I’ve been patiently holding shares myself for a long time. When it comes to AIM mining stocks it is quite a rarity that they either actually make it into production, or get taken out by a larger predator prior to that stage, and for many of them the resource in the ground sounds far better than the reality of actually extracting it commercially.
The name Andalas Energy will be enough to send a shiver down the spine of investors who had high hopes for the company, before getting shafted, but the new company that is has evolved into, Advance Energy (ADV), looks very different.
Energy services provider Lamprell (LAM) saw its share price take a big hit following the release of its annual results for 2020, which included a statement about the need to raise further capital via an equity issue – the exact amount and terms of which is yet to be announced.
When I covered Longboat Energy (LBE) last July there was much derision on social media and bulletin boards over my opinion that the company was well overvalued at the share price at that time, but it has just announced that it is raising funds at discount of around 40% to that level in order to complete an acquisition.
As many of you will know, I’ve never exactly been a big fan of shares in small AIM listed lithium miners and viewed most as being junk when they were being heavily promoted a few years back when the metal was suddenly in the limelight and any sort of mention of it had private investors scrambling to buy in.
Standard-listed Gold explorer Panther Metals (PALM), under the oversight of Ariana Resources’ (AAU) CEO Kerim Sener in the position of Chairman, has announced that the Australian listing of its Aussie assets has moved a step closer with the completion of a pre-IPO funding round. This is good news – especially if one considers the implied valuation.
Around six weeks ago I covered the IPO of a small mining company called Caerus Mineral Resources (CMRS) and noted that it looked interesting for anyone who liked these small, speculative type of plays.
Pharos Energy (PHAR) has been one of the worst stocks that I’ve been invested in – not necessarily in terms of the share price performance, although that has also been awful, but more the way the company has been managed and the amount of money that I’ve seen them waste over the years.
Asiamet Resources (ARS) is a company that I’ve been a fan of based upon its assets, which look more attractive than ever at current copper prices, but currently I have some concerns as to where its share price might be heading shorter term.
Any regular reader of this website may have noticed that I have become fairly bullish on the travel sector recently, although mixed with a degree of caution as well as there are still plenty of risks for these businesses.
A “Contract Win” announcement from IT services group IDE (IDE), which includes it emphasising “under the terms of the contract the partner has committed to procure services from IDE to a value of £22.5 million over the next three years… in addition to the existing circa £5 million per annum of revenue contracted with the partner”. Does the news justify the current share response to 3p – up 287%!?…
BigDish plc (DISH), “a technology development company is pleased to announce a Business Update”. So what’s this latest from its Digital Communications Officer Zak Mir & co?…
It probably shouldn’t do, but it still sometimes amazes me at just how short a term outlook some PIs seem to take these days, especially when it comes to companies in the natural resources sector.
Back in August I wrote about Shanta Gold (SHG) as being worth a look at around the 16p level, and with a chance of a good profit over the coming months.
When it comes to small mining companies, lots of them appear to have a great story and if you listen to those doing calculations based on resources in the ground, most are worth billions!
When it comes to new technology that is yet to become common place, being amongst the first to get involved doesn’t necessarily guarantee success, especially for early investors in smaller companies.
Just because a company has traded at much higher share price levels it doesn’t mean that it will do so again, and that is particularly true of oil companies at the moment.
I had been wondering when further news would come from i3 Energy (I3E) and these week two significant RNSs dropped on the same morning, which ultimately led to shares being suspended for the foreseeable future.
So far Asiamet Resources (ARS) has been fairly typical of many small AIM resource stocks, in that it has largely failed to live up to expectations and has had to keep raising money at ever-lower prices over a number of years.
A “New Business Wins” announcement from self-styled “creative audio-visual systems integrator that specialises in providing innovative marketing solutions”, MediaZest (MDZ) – and the shares currently over 40% higher in response...
An announcement from Itaconix (ITX) including “as we continue to experience increasing demand for our detergent polymers, this funding will assist us with staffing levels to support growth in customer volumes” – and the shares currently higher at 1.55p...
A “secured a further £1m funding for the Altalto waste-to-fuels project from British Airways PLC and Shell” announcement from Velocys (VLS) – and the shares up from around 2.5p to still well above 3p, capitalising it at well above £20 million...
The previous update from Itaconix (ITX) was “Company Update on Funding and Business Plan”, on which the shares further slumped and I summarised Woodford dog in need of funding (natch) says “there can be no assurance” & considers AIM de-listing. Today from the company a different approach, with an announcement; “Strong Revenue Momentum and Extended Funding”...
Brick model events and shows group Live Company (LVCG) has updated including “first quarter revenues on target… is pleased to confirm that no events have been cancelled” and financial manoeuvrings including “to show his support for the company during these unprecedented times, David Ciclitira, the company's Chairman, has provide a secured term loan of £500,000 (less fees and expenses)… on standard commercial terms”. The shares have currently responded though to below 14p – more than 15% lower…
A “COVID-19 Update” from “UK developer of beauty, personal care and life sciences products” InnovaDerma (IDP) – and the shares currently more than 20% higher, towards 46p. What’s the good news?...
I’ve always gone on the basis that if something doesn’t feel quite right when it comes to non-binding deals being announced, then at the very least it is worth questioning the likelihood of completion. Of course, that isn’t always the case and some non-binding letters of intent, or memorandums of understanding, do in fact proceed as outlined, but my first thoughts when I saw today’s news from Zenith Energy (ZEN) was that it looked very ‘spoofy’...
Previously writing on technology products principally for the gaming and broadcast industries company Quixant (QXT), with the shares towards 160p I concluded hopefully my prior warning was heeded – and, with that, I question whether the “softness in demand” is really worse than should have been reasonably anticipated? As such, I also remain wary of the company’s confidence for the future – and particularly so with the market cap still more than £100 million (currently circa $130 million). I continue to avoid. Now a “2019 Trading and COVID-19 update” – and the shares currently around 60p, a further more than 20% lower on the latest news…
I3 Energy (I3E) was one of the most popular oil shares on AIM last summer and autumn, but the situation is very different now after a number of failures operationally.
Itaconix (ITX) “is pleased to announce… an important step for us to assess the commercial potential of our initial BIO*Asterix™ additives” – and the “New Collaboration in Biodegradable Packaging” titled-RNS has currently helped the shares to 1.70p, approaching 10% higher on the day…
Itaconix (ITX) “is pleased to announce that it has received its first order from a second European customer for its Itaconix® CHT™ 122 bio-based detergent ingredient” – with the announcement currently helping the shares more than 4% higher…
Gold stocks seem to be very much on the radar at the moment, with the price of the yellow metal looking very strong against a back-drop of worldwide concerns over coronavirus and investors looking for a safe haven.
Previously writing on Lekoil (LEK), it was updates at 6:04pm… the sheikhs indeed fakes! Another massive scandal on AIM. Now it’s an intra-day, 2:29pm, “OPL 310 Project Update”…
Making a profit on small oil and gas exploration and appraisal companies largely comes down to timing your buys and sells correctly, rather than just holding onto your shares through the ups and downs. With many of these companies the actual risk of holding for a drill often isn’t worth it, especially with exploration plays, but good money can still be made in the lead up to drilling activity, and by leaving some profit to run in the case of some of the safer appraisals. Buying when there is a general lack of interest and no immediate operational activity, and then being patient, is often the best way to get in at a good price – even if not necessarily the lowest price, as that generally comes down to a large slice of luck...
Pembridge Resources (PERE) today issued a production update for the latest quarter up to the end of 2019, and based on the figures contained within that, many are struggling to understand why the company isn’t valued more highly.
A “New Order for Smart Metering Project in India” from CyanConnode (CYAN), and the shares are currently rising back above 3p – this after I noting last month “New Order”…or not?... And if order delays are a positive, why bother in the first place?!…
These days on the markets there seems to be a willingness by some private investors to just believe any story that is being spun, rather than making any attempt to actually check the facts themselves.
An AGM “Formal Sale Process as part of the Strategic Review” and “Operational and trading performance” update from Nanoco (NANO) includes that it “is currently in discussions with certain interested parties who have been invited to submit indicative proposals in mid-December for an acquisition of the group” – though the shares have currently responded to sub 13p, more than 5% lower…
Investing in any small mining company usually carries a large risk and far more fail than ever actually succeed and make it into profitable production, but there are some that appear to have more chance of making a go of it than others...
I3 Energy (I3E) has certainly had its share of ups and downs during its current drilling campaign, but I can still see the potential for shares in this to come good.
It seems to be a growing trend on the AIM market, especially with resource companies, whereby they believe that changing the name of the business will erase memories of past failings!
On 26 September AIM-listed Vast Resources (VAST) released an update on its Chiadzwa Community Diamond Concession in Zimbabwe. The market reacted very positively, marking the shares up from 0.118p the previous close to end the day at 0.2p and the rise has continued to the current 0.345p. In addition, a subscription at 0.2p was announced alongside news of a finance facility worth $13.5 million which was due to be signed last week….except it hasn’t as yet. Oh dear – on the principle that bad news is always delayed I am a little nervous of the recent share price strength already.
I’ve never been able to see any value in Catenae Innovation (CTEA) and haven’t been surprised to see the share price collapse, but an attempt to give it a pump now seems to be underway – which I’d expect given that a placing can’t be that far away!
Any negative news on an oil drill tends to see the share price getting hammered, and that is exactly what has happened today after I3 Energy (I3E) announced that a pilot well had failed to hit the reservoir that it was targeting.
The share price of Bahamas Petroleum (BPC) almost doubled following an announcement of progress on its ambitions to drill an exploration well next year, but is such a big rise really justified? Today there is a further ramptastic "technical update", world class prospect, yadda, yadda, yadda.
Regular readers of ShareProphets will know that I’ve been a fan of Horizonte Minerals (HZM) since 2016 - as well as tipping it on the ShareProphets Podcast last week - and it is also a company where I hold some shares myself, so it is good to see that it is continuing to progress in the right direction and has had some good news today.
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.
It never ceases to amaze me how willing many private investors are to forget past failures and accept that a complete change of direction in a business is suddenly going to bring success.
Companies which have undergone several name changes and have never managed to achieve anything in their previous incarnations always raise red flags for me, and I suspect that Power Metal Resources (POW) will follow a similar trend to many others that fall into this category.
In June last year “i-nexus Global plc (INX), a provider of cloud-based Strategy Execution software to Global 5000 companies”, was pleased to announce admission to AIM, raising £10 million at 79p per share with CEO Simon Crowther emphasising “the power of our software, our outstanding customer base, strong competitive position, high levels of recurring revenue and large addressable market”… The shares last closed at 34.5p and today a “Trading Update”…
A “Shareholder Loan Conversion” announcement has followed results from Ncondezi Energy (NCCL)…
Previously writing on online marketing company for the gaming industry Veltyco (VLTY), at the end of May I concluded with the shares at 3.75p I bet “the directors continue to explore appropriate sources of capital”! Though with the shares around these levels, it’s still, on a meaningful here scale, good luck with that!. Natch, still currently a sell / bargepole. Now an “Update re trading and financial position” intra-day (12:12pm). Uh oh…
If legal action is being taken against a listed company you would expect that it would inform shareholders to be informed immediately, so I was more than a little surprised that it took Nu-Oil and Gas (NUOG) more than two weeks to inform the markets of a claim against it.
Private investors seem to love the boom or bust scenario that applies to many of the exploration drills for oil and gas, but is it really worth taking the risk on these types of plays?
Unfortunately for any holders, Nu Oil and Gas (NUOG) has played out pretty much as I expected it to over the past couple of years, and anyone holding through this period will have seen their investment decimated.
A lot of the time there is very little that you can do to avoid bad news coming out of the blue, and even less so where the directors of the company have previously tried to make out that the situation is far more positive than the reality. That would definitely seem to be the case with African gold miner Avesoro Resources (ASO), and if anything proves that I should stick with my gut feeling when something doesn’t quite feel right about a company...
I3 Energy (I3E) has had a bit of a bumpy ride of late, largely thanks to some untrue rumours which were being spread by certain individuals on social media, but the uncertainty has now been resolved following the latest news from the company...
I commented a little over three weeks ago, after Woodford Norwegian Dog Thin Film (THIN) had released its FY18 results at eleven minutes past one in the morning (truly no-one-is-watching o’clock!), that the company had announced plans to raise funds by the end of May as it did not have sufficient funds for operations throughout the financial year 2019. In fact we knew a funding round was on the way since the end of February and here we are on the last day of May…….and no funding round yet.
At the lower end of the market if you want to get an idea of who was inside on placings then social media is often a good indicator, and in particular some of the accounts on Twitter which have significant numbers of followers and have been pushing the company hard just prior to an equity raise...
Last week I wrote a piece here about how I expected the market to react badly when EVR Holdings (EVRH) released its final results for 2018, so I wasn’t surprised to see a drop of around 25% in the share price when that news subsequently came.
Large mining projects often take a long time and huge amounts of investment before they finally come to fruition and actually start producing the raw material and a revenue stream. During that time the share price can experience a lot of volatility and I remain to be convinced that the majority of PIs have the patience to invest long term in this type of company, and in some cases there is an argument for buying in closer to production once everything has been sorted out and financing has been finalised...
Pharmaceuticals isn’t a sector that I generally tend to invest in, other than possibly for the dividends paid by some of the huge multinational companies.
Smaller North Sea oil and gas companies seem to be out of favour, as investors go chasing big profits in riskier, less proven parts of the world, but more often than not the outcome tends to be heavy losses on these types of outfits.
Minoan (MIN) has announced results for its year ended 31st October 2018 and that “the group has recently received an approach and is in discussions to create a joint venture on one of the five hotel and villa sites... The discussions around value indicate that, if completed in line with those discussions, a figure would be realised at an indicative value which the board believe that shareholders would find attractive”…
Writing last month on self-styled “a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems”, CAP-XX (CPX), as the shares were sliding to around 7p, I noted - despite it stating “the ongoing growth in the pipeline of major new sales projects has given the board the confidence to start examining options for expanding production capacity” - that the outlook was actually problematic and that it remains on the bargepole list. Today a “Trading Update” – and the shares currently again lower, now to around 4p!...
Ascent Resources (AST) has updated that the “crucially important” IPPC permit has been confirmed by the Slovenian Environment Agency to the company’s partners “as fully valid, no further appeals against the permit are possible” – and shares in the company have currently responded to 0.625p, 25% higher…
Trading in the shares of Cadence Minerals (KDNC) was incredibly volatile last week following two announcements by a company in which it holds an equity position.
Apologies for missing it on Friday, but it turns out that there was yet another disaster for Neil Woodford on Friday as its Norwegian play revolutionising the world of chip and PIN, Thin Film (OB:THIN), announced a strategic update and corporate restructuring after hours. Uh-Oh……a strategic review! No wonder he was in such a bad mood as he lashed out at critics offering false analysis and fake news.
Bluebird Merchant Ventures (BMV) says that it “is pleased to announce its Interim Report and Accounts for the half year ended 31 December 2018… and to provide an operational update on the Kochang Mine”...
Secure payment cloud platform company PCI-PAL (PCIP) “is pleased to announce its unaudited interim results for the six months to 31 December 2018”, with Chairman Chris Fielding emphasising “the management team has made positive progress against our principal strategic and operational objectives”. The shares have responded… er, currently 8% lower to 23p…
I’ve consistently cautioned on restaurants group Richoux (RIC) – most recently as the shares fell below 7p HERE. Now a “Proposed Cancellation & Notice of GM” announcement. Uh oh…
An intra-day (11:08am) announcement and Woodford Investment Management the major shareholder. What’s the chances this announcement from self-styled “transatlantic healthcare IP commercialisation group”, NetScientific (NSCI) ain’t going to be good…
Over the weekend I covered a waste-to-energy company called Eqtec (EQT) and surmised that it was going to need funding very soon, and this would most likely come in the form of a discounted equity issue.
These days I tend to avoid oil companies at the bottom end of the AIM market as usually the risks aren’t worth the rewards, and the majority of them do nothing but fleece investors over a number of years without ever achieving anything of note.
Asiamet Resources (ARS) is one that I have been wrong about in the past, as I wasn’t expecting the share price to drop as low as it has done, but that has been part of a more general trend amongst the AIM resource stocks that aren’t currently generating any revenue.
Rockhopper Exploration (RKH) was one of the darlings of AIM back in 2010/11 and was a big hit with investors when it first discovered and appraised the Sealion field in the Falklands, but since then interest has waned.
Indian fashion retailer Koovs (KOOV) has just released its interim results and they don’t look pretty, but to be fair to the company that was largely expected.
I can’t see Europa Metals (EUZ) shareholders being particularly pleased with the latest news from the company, and even less so with the 22% odd drop that it caused in the share price yesterday. This small AIM company is one that I haven’t exactly been a fan of in the past in its previous incarnation as Ferrum Crescent, and as is often the way with these companies that change name, and even management, not a lot tends to change with regards to performance...
When investing in a company long term it is all about getting in at a good price, rather than having to buy right at the bottom of any temporary dips along the way, as long as things go to plan for the business.
Well, here we are again – another Woodford Unicorn has reported, this time Nowegian-listed Thin Film Electronics (OB:THIN) with its 2018 Q3 numbers, and yet another hungry mouth to feed needs feeding, with little in the way of revenue to offer any comfort. The report starts well, but….
A few weeks ago I covered the fact that Bellzone Mining (BZM) looked to be in serious trouble, and following recent developments it looks in an even worse state now. This share has been a recent favourite of the pump and dump crews, as the uncertainty over its future has caused the share price to be incredibly volatile and no doubt some will have made money from these daily fluctuations. But what really amazes me is that so many PIs seem willing to buy into a share which already had a very high chance of failure, and even more so now.
It never ceases to amaze me how much of a gamble some PIs will take with their money, even when the company itself has warned that it is in real trouble and it is almost impossible to see a way out of a bad situation which would result in a higher share price.
Orosur Mining (OMI) has been a big disappointment for me as it was one of the small AIM miners which I thought had a chance of actually going on to bigger things.
Back in June I wrote a piece suggesting that Jangada Mines (JAN) would raise further funds at a significant discount, and at the time I was shot down by many, including some market commentators.
CyanConnode (CYAN) “is pleased to announce” both “the receipt of a $11.6 million purchase order relating to a smart metering deployment by an Indian state-owned utility” and “the consolidation of its European operations”. Hmmm…
Woodford’s month from hell has got off to a strong start with an immediate dog’s dinner of a revenue/profit warning from uber-dog RM2 International (RM2) this morning. Let’s take a closer look and count up all the negatives.
Andalas Energy (ADL) has undergone a change of management and has also switched its asset focus in an attempt to turn things around from the disaster it has been ever since it changed its name from CEB Resources back in late 2015.
Allied Minds (ALM) was due to release its interims at the end of this week but put out a rather strange statement this morning delaying it until the end of September. I thought it would be helpful to offer up an explanation as the situation is more complex and worrisome that this morning’s five-line announcement might indicate.
After an “Operational Update” from Ascent Resources (AST), despite stating “pleased with the progress of the strategic review”, had seen the shares crashing at the start of this week, they are currently soaring on the back of a “Permitting update”…
Regular readers of ShareProphets will know that I am usually very wary of any natural resources company that isn’t actually producing anything, especially if they are valued in the hundreds of millions.
The only real surprise with the RNS that was issued by Nu-Oil (NUOG) this morning was that investors were actually surprised that there had been further delays to the farm-out process and completion of the work at its well in Newfoundland!
An “Operational Update” from Ascent Resources (AST) commences “as previously announced, the company commenced a strategic review in April 2018 to review the various options available for the company to maximise value for shareholders” and later includes “the board is pleased with the progress of the strategic review to date and discussions are ongoing with a number of different parties”. Good, good - ‘Pleasing’ progress towards maximising value for shareholders then… and the shares have currently responded… er, circa 40% lower towards 0.40p!?...
The share price of Mobile Streams (MOS) has pretty much halved since I recently covered it as one to avoid at all costs, but despite that drop I still see no value in any investment here.
Five months ago, I gave Mr Poulden at PCG Entertainment (PCGE) a slight ribbing as he never seems to achieve anything at PCGE other than a steady decline on the share price of course. He responded rather pompously so I thought it about time to review the exciting recent progress. Funnily enough just yet another bloody placing to report!
Audioboom Group (BOOM) has announced that it is to announce results for its half year ended 31st May 2018 “on or around 20th July” - and also taken the opportunity to hit out at the share price decline since restoration of trading in its shares on 14th June. Hmmm…
Just following up on Steve’s piece on Itaconix yesterday (HERE) with a couple of further observations relating to some interesting interactions between Woodford and its partner-in-crime in many of these early stage biotech / tech plays, IP Group, (IPO), but more importantly to ponder why on earth either of them are bothering.
Just in case anyone thought I was getting less cynical with age following my earlier piece, I thought I would also update my thoughts on Big Sofa Technologies (BST) following all the recent news. In short, I remain as bearish as ever and think a cash crunch will be soon upon us.
In May Safestyle UK (SFE) was “pleased” with an interim legal outcome and the shares bounced above 60p. However, I concluded there remains a raft of uncertainty meaning I wouldn’t want to own the shares - and continue to avoid. Today a trading update…
Oil exploration is very different to the boom we had back in 2010 in terms of the share price movements that we see for companies that are engaged in drilling.
Indian online fashion retailer Koovs (KOOV) is a company that I have kept an eye on as some were tipping it to be the next Asos, but I have always been far more bearish on the chances of that actually happening!
I suggested yesterday that things were looking up for Neil Woodford but we can all relax again as matters return to normal with disaster looming around every corner for the star fund manager as Itaconix (ITX) has suspended its shares this morning pending a potential fund raise.
I’ll keep this relatively short as I’m meant to be enjoying a long weekend away at a big family gathering celebrating my step-father-in-law’s 70th birthday but also I don’t have a lot to add to my previous comments on Big Sofa Technologies (BST). However, I felt it appropriate to respond to the latest view on last week’s results from the HSR team.
AIM-listed Turkish gold miner Ariana (AAU) has posted its FY17 results. As promised, there are some details of the Kiziltepe joint venture, the results got a clean audit (as opposed to last year which raised the need for more funding) and Ariana has offered the clearest indication yet of an end to dilutive placings. Overall, it makes a pretty happy read.
When investing at the speculative end of AIM, I think it is critical to try to avoid sudden disasters or unexpected suspensions as a sensible stop-loss strategy can usually deal with most other occurrences. Accordingly, I thought I would flag a potential issue in the making at Appscatter (APPS) as the current risk / reward pay-off looks way off.
It seems to be the season for big share price rises off of the back of very little in the way of substance across quite a few companies at the lower end of AIM at the moment!
In my view, Woodford’s dealings with what is now his largest unquoted holding across his funds, Benevolent AI, is his kryptonite and will be his undoing and I’m doing a couple of articles outlining why I think the current $2 billion valuation is an absolute spoof and why I believe Neil Woodford is complicit in said spoofery.
The People’s Operator (TPOP) is one of a number of AIM companies where you have to wonder whether there is really any point in it continuing to stay in business, other than generating fees for its brokers.
There is no denying that the news released by Bahamas Petroleum (BPC) last week was positive, but in no way does it justify the £30 million increase in market cap that has occurred since then.
I will do a separate piece later this week on all the Sub-Standard Shockers that have come out (or not) with their accounts on deadline day of 30 April; however, I had to comment separately on Widecells (WDC) which as I type is still trading although should be suspended for two different reasons.
Some positive sentiment finally seems to be returning to UK offshore oil and gas companies, and Cluff Natural Resources (CLNR) could be in a position to benefit from that. Things have been pretty dire for the North Sea focused company, and although its assets revolve around gas, which has performed badly in comparison to oil of late, any renewed interest in the area should be of benefit.
Given the rise in oil price that we’ve seen over the past week or so, and the highest levels that it has been at in quite some time, I’m a little surprised to see Savannah Petroleum (SAVP) still languishing at around the 12-month low. With a market cap of nearly £230 million it isn’t as likely to see such large movements as you get on the AIM micro caps, but it is still small enough that I would expect the higher commodity price to have had some impact, given that it produces significant amounts of oil already.
I initiated coverage on Appscatter (APPS) when it came to market last September with a few warning signs and a nervousness that history could repeat itself to the detriment of its shareholders. Well seven months in and a potential acquisition accompanied by a massive fund-raise announced (obvs), I thought I should update my thoughts.
Berkeley Energia (BKY) was once one of the more popular shares on AIM, and there was plenty of interest as its share price rose steadily on speculation.
It’s clearly one of those weeks where chickens (or falcons) come home to roost as the wheels have well and truly come off at Falcon Media House (FAL) this week and it looks like the inevitable is starting, only two years after I started warning about it HERE.
Amerisur Resources (AMER) has certainly failed to live up to the expectations of its investors and the share price has been in a downward spiral for several years now.
Generally, I’m wary of the reasons for companies which are already listed on other exchanges deciding that they want to be dual-listed on the AIM market. This is especially the case when it comes to ASX companies operating in the natural resources sector, as in general the track record for those hasn’t been great, with often very little of substance being achieved despite large sums being raised on AIM. There are exceptions though...
Jersey Oil and Gas (JOG) hasn’t had much luck in the past, having managed to get a decent sized field into production it was subsequently hammered by the collapse in the oil price.
Tom Winnifrith and Cynical Bear have been battling it out over AIM-listed Big Sofa (BST) for a fair while. Cynical worries about the company running short of cash, Tom is interested in the growth and points to the fact that Sofa is about to turn profitable (according to the company). In the middle of all this, I have a few shares myself and have been wondering what to do (and so did nothing!)
Nu-Oil and Gas (NUOG) seems to be one of those AIM shares which periodically finds favour with private investors, despite never actually having achieved anything of note other than burning through investors cash over the years.
The People’s Operator (TPOP) is one of those AIM companies where it is hard to see how it will survive in the longer term, and unless things somehow alter dramatically, the recent changes will only delay the inevitable.
Lithium has been all the rage amongst AIM investors over the past few years, but the reality is that many of the projects which people have been getting excited about will fail to ever actually produce anything.
I can understand why longer term investors in Parkmead Group (PMG) may be somewhat unimpressed with the performance of the share price recently, but the company itself is continuing to make good progress. I hold shares in the company myself, and whilst the share price has generally been trading in the mid-30p to low-40p range, in spite of the strength that the oil price has been showing in recent months, I’m happy to remain invested and see how things unfold in the coming months and years.
My Woodford piece earlier today highlighted the challenges of taking too much notice of what you hear from the company itself. I think the same can be said in connection with Big Sofa Technologies (BST) following its poor trading update yesterday.
Pointed in its direction by Robert Dwek in the comments on my last Woodford piece, I thought I would write an article on the hugely capital intensive Woodford portfolio holding, Atom Bank, a start-up bank. A bit of a long read but I found it quite intellectually interesting looking at the challenges facing a start-up bank and it also throws up one of the first major funding issues for Woodford caused by the predicament he has recently got himself into.
The rise in shares of Lionsgold (LION) has got the attention of many, and it certainly looked as though news was leaked prior to an RNS later in the day. Having seen the share price dropping steadily of late, it suddenly surged more than 40% on much higher than normal volume. Initially it looked like just another pump, as this share has been very popular with private investors ever since its share price rose by around 500% in December and is very volatile, but then an RNS dropped informing the market that it was making a new investment, and it ended the day up nearly 90% at 4.55p on the ask.
I can see why holders of Tri-Star Resources (TSTR) would be less than impressed with the recent open offer, especially given the huge discount to the share price prior to that. This isn’t a company which I have really followed closely in the past, but the recent large fundraising at a 92% discount to the previous share price, and subsequent approval at the general meeting this week, got my attention.
Self-described “pioneer in solid-state battery technology and materials innovation”, Ilika (IKA) has announced results for its half year ended 31st October 2017 emphasising that it “has delivered a series of Stereax development and deployment partnerships which are driving revenue growth and enhancing insight into the addressable sectors for its technology”. Sounds promising…
Sometimes investing takes a lot of patience, but if you are in at a fairly early stage and are prepared to hold long term, then you can reap the rewards whilst others are left wondering why they never bought any shares whilst the price was still relatively cheap.
I must admit to having a slightly morbid fascination with the various death spiral variants. They all look so similar on the face of it but the devil is in the detail and although the one announced by Tern (TERN) on Thursday looks harmless enough, it could easily crucify the share price, much more so than has been seen already.
A week ago, I noted that news was due from the disruptive pallet manufacturer, RM2 International (RM2) and doubted that it was going to be positive. Well, it finally came out yesterday and I wasn’t disappointed although assume Neil Woodford and the long suffering shareholders of this and his Patient Capital Trust (WPCT) probably were.
I’m warming to the current board of BOS Global (BOS) and the transparent way that it is dealing with the chaos left behind by Michael Travia. The latest Corporate Update gives some hope for the future with hints at rescue funding, although I doubt it will be at anywhere near the current share price.
If I was Neil Woodford I would wake up each Monday morning thinking, for the love of god, please can this be the week with some good news to come out of the Woodford Patient Capital Trust (WPCT) portfolio. Unfortunately, I don’t think it will be this week as it looks like crunch time is approaching for the “disruptive” pallet-maker, RM2 International (RM2).
Hurricane Energy (HUR) remains a favourite of mine amongst the AIM listed companies which have appraised assets and booked reserves, and I think it is one of the few which will make it into production in the near future, and has the potential to grow much larger.
It was only last Sunday when I was explaining that buying BOS Global (BOS) at 3p wasn’t a bargain. Well, it closed yesterday down 36% at 1.75p due to a shocker of a Company Update, the short summary of which was: Help, we need some money quick! It’s still not a bargain.
I laughed at last week’s announcement from URU Metals (URU) concerning the acid leaching results but I wasn’t necessarily going to comment on the meaningless tripe. However, I feel I almost have a moral duty to counter the “Speculative Buy” nonsense from its corporate broker, Beaufort Securities, so here goes.
Several of the once really popular oil and gas companies seem to have almost have been forgotten by investors, as progress has been far slower than had originally been expected and people have gone off seeking riches elsewhere.
Tom covered the news of the failed Schoold / Lingo Media merger that FastForward Innovations (FFWD) announced on Friday in his Bearcast (HERE); however, I thought it was worth taking a closer look at the numbers and pondering when the next major write down to FastForward’s portfolio, and Lorne Abony’s reputation, will come.
I saw that Tern (TERN) was one of the biggest fallers yesterday down almost 18% to 5.25p. However, having revisited the information related to the Device Authority funding, it seems to me that it could drop far lower than that and very quickly indeed as and when it becomes clear that Device Authority is a busted flush.
I’m always wary of companies that have seen a large hike in share price, especially smaller ones in the natural resources sector, but in some cases the rise would appear to be justified by recent news.
Any new IPO in the natural resources sector tends to grab my attention, and whilst there are plenty of them where I wouldn’t even consider investing my money, occasionally one comes along which looks to have a bit more potential. That would appear to be the case with Curzon Energy (CZN).
Congrats to Kibo Mining (KIBO) for being the first of my preview targets to release results this week and, as my preview predicted, cash was pretty sparse, hence the £500,000 new funding announced this morning. Not a bad deal all in all but not sure what the directors are playing at.
If I’m being completely honest then I have to admit that I was somewhat annoyed when an RNS from Central Asia Metals (CAML) initially landed to say that trading in the shares had been temporarily suspended pending the acquisition of a large asset. That annoyance though was largely driven by a shorter term view, as shares in the company had been doing very well and the price was increasing steadily in the run up to the financial results, which were expected to be good and with yet another high yielding dividend to be paid. Alongside that copper was flying and had just topped the $3.10/lb level.
At the start of June I was highly critical of the opaque nonsense emanating from BOS Global (BOS), particularly around the Call Design deal (HERE). To its credit, it provided some answers and clarity at that time; however, since then my list of questions arising from the RNS’s has started to grow again so here’s my Bank Holiday weekend quiz for Michael Travia.
Falcon Media House (FAL) finally reported its year-end results yesterday on the last possible day and, surprise, surprise, despite only coming back to the market 4 months ago, with 12 months funds in the coffers, honest, it has now had to admit that it needs more funds. This is shoddy stuff and is an area where the FCA should investigate.
Nu-Oil and Gas (NUOG) is a company that I covered a couple of weeks back as being totally over-valued, and although it has pulled back a bit I think it potentially has further to go.
Having previously, early this year, concluded on GAME Digital (GMD) it early days in the ‘diversification’ and I continue to consider it far from certain that there is a sustainable proposition here; avoid/sell, I note a “Trading Update” announcement from the company today...
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”!
HaloSource (HALO) “is pleased to confirm that the company has raised approximately £1.8 million ($2.2 million) through the issue of an aggregate of 117,692,560 new common shares to new and existing investors at a price of 1.5 pence per new common share”. I bet it is…
I wrote last week (HERE) about the disappointing opaque nature of some of the recent announcements emanating from BOS Global (BOS) and raised a number of questions that were bothering me. To give the company some credit, it has issued two RNS’s since then clarifying certain aspects and particularly pleased with the clarity on the Call Design deal.
No great surprise that Nektan’s (NKTN) CEO, Leigh Nissim, has announced his resignation this week as it must be a challenging and dispiriting role, although one I do wonder when he actually started looking as he’s been in the role for less than a year. It leaves me though with me with a sinking feeling about the PR machines at play at this end of AIM and must also leave Daily Mail readers fuming.
After hours on Friday, Toople (TOOP) announced an offer of a lifetime, namely to subscribe in a placing to raise up to £1.9 million at 2p having spent the £2 million it raised a year ago (at 8p). This shouldn’t come a big surprise as the business announced in March that funding would be needed; however, I still think it is worth reiterating a couple of points.
Writing previously in March on Flowgroup (FLOW), with the shares then at 5p, I concluded that there looked to remain both funding and jam-tomorrow uncertainty and to continue to avoid. Presently, the shares are approaching 40% lower on the day, at sub 2p, on the back of news that the company “is in the advanced stages of preparing a significant capital fundraising as a potential alternative to the proposed disposal of the Flow Energy business”…
An “Update on share suspension, Inata and Tri-K” announcement from Avocet Mining (AVM). “Update” on share suspension? When was the suspension then?...
Writing last month on Flowgroup (FLOW) I noted the shares down below 6p, having been 25p+ less than a year ago. Having fallen further, to sub 4p, they have currently recovered to 5p following a couple of recent announcements…
I last commented on Sub-Standard Shocker XI member, Toople (TOOP), at the start of February (HERE) following its final results on 31 January, in which I was sceptical of its going concern claims and thought funds would be needed shortly. Funnily enough, it has now announced that the business is struggling and it needs new funds. No great surprise.
Having recently recovered to comfortably above 7p, shares in eServGlobal (ESG) are currently sliding back towards that level despite an AGM Statement including “we expect sufficient order flow in H1 to support our outlook of breakeven in the core business in the 12 months to 31 October 2017, and progress by HomeSend remains consistent with reaching a breakeven point during this calendar year”…
Having previously concluded with shares in Rex Bionics (RXB) at circa 70p HERE, 43.5p HERE and 32.5p HERE, that, although a type of business you want to succeed, some way from being able to prove its commerciality and cash burn concerns until it gets there, the shares don’t look to appeal as an investment, I note they currently at 13p and an update including that “the company estimates that it will likely need external funding by the end of April 2017 in order to remain as a going concern”. Uh oh…
Hallelujah! Xtract Resources (XTR) finally managed to issue the long-awaited DFS at 4.23pm on 28 February. It’s taken me a bit of time to comment on it as I’ve been scratching my head thinking to myself: “Is that it? Is there a page missing? What now?”
Flowgroup (FLOW) has ‘welcomed’ an announcement following government Feed-in Tariff review, adding it believes the statement is “the result of significant co-ordinated industry pressure, in which the company played a key role”. Good, good, the UK market promising again for it then? Er…
If the Prime Minister does a fraction of what she promised in her big speech this week, we can see shares soar like a stone from a ballista. But talk is cheap. However, as I’m not a cynical soul, there was the odd thing said which gave me hope - and I’m talking about my personal share portfolio. But I expect we hold a lot of sectors in common.
I only wrote about Mercom Capital (MCC) at the weekend commenting on the strange goings-on, particularly the share price continuing to hit new highs on hype and hope alone (and a lot of Calvet buying!) at the same time as the funding round being reduced. Today’s announcement of further changes to the proposal adds to the mystery.
Friday saw AIM-listed e-marketplace play Cloudbuy (CBUY) announce that it had drawn down a further £1 million under its funding package with 11% shareholder Mr Roberto Sella. This follows the original drawing of £3.3 million back in April under a funding package of up to £5.75 million. Unfortunately it seems that cashburn remains a problem, and one wonders how long the new £1 million (and the remaining £1.4 million available under the deal) will last before the company has to get out the begging bowl.
If you look at the AIM market it is full of companies that have been promising the earth for years, but have yet to actually achieve much of any real substance.
I appreciate that there are many contenders for the title in the heading of this piece but I do think Milestone Group (MSG) can make a real claim to be up there as one of the best examples of the AIM lifestyle company and, as a result, the recent funding issue highlighted HERE shouldn’t really be that much of a surprise. Please allow me to explain.
As many experts continue to get it wrong on a regular basis, it is very hard to predict where commodity prices could go in the next few years, but I can see upside for nickel miners.
Short-termism seems to be even more prevalent amongst AIM investors these days than I can ever remember previously, and this is having an impact on the share price of any company that has any sort of delay to its business.
I was starting to warm to Colin Bird at Xtract Resources (XTR) with his decisive action and straight-talking, although today’s hugely disappointing funding RNS which needs about five reads and three espressos to understand leaves me feeling cold, although I’m guessing Beaufort Securities and Beaumont Cornish should shoulder some of the blame.
Oil still has a long way to go before it is at a healthy level for many oil companies, but the recent rise back above $50 a barrel certainly seems to be creating some interest in the sector, at least for the time being.
Lithium is one of those commodities where its mere mention seems to be enough to send the share price of smaller companies soaring, often to crazy levels compared to the actual news.
As someone who works in the fishing tackle industry as my day job, and have done so for nearly 20 years, I watched with interest as the first retailer in the sector floated on the AIM market last June.
Having written about the dreadful Sanderson Capital Partners loan arrangement with Eurasia Mining (EUA) yesterday (HERE), I thought it might be insightful to provide a case-study in greed from the same guys at Kibo Mining (KIBO) and what it might mean for the stock going forward.
I’ve been following the antics of Sanderson Capital Partners for a while now and yesterday’s latest shocking funding deal with Eurasia Mining (EUA) has tipped me over the edge and forced me to write.
Another week and yet another soft interview for Mark Gustafson, CEO, of Challenger Acquisitions (CHAL), this time at Sharepickers. Desperation is setting in as time is running out and the only buyer in any volume is no longer able to buy. It’s not looking good.
I first wrote about Nektan (NKTN), my bear pick of the year, in mid-January HERE with the share price having already had a bad start to the year down to 107p from 130p at the close of 2015. Following yesterday’s pre-close trading update for the year to 30 June 2016, it closed down 23% on the day at a mere 47p. Time to reassess my position.
Shareholders in AIM-listed cancer-buster ValiRx (VAL) rejected a disapplication of pre-emption rights special resolution at the AGM held last Monday. The company said a further announcement would follow “in due course” but since then there has been silence. But it seems that there might be a few implications for the financing of the company going forward.
Integrator of telephony systems into existing software, Synety Group (SNTY) has announced what its CEO, Simon Cleaver, considers “a resounding endorsement for our technology”. The shares have though currently responded just 1.4% higher to 72.5p. Hmmm…
Despite being a self-declared “world leader” and emphasising it “has made good progress in the past six months”, shares in energy management systems designer and manufacturer CAP-XX (CPX) currently trade approaching 20% lower today at around 4p on the back of results for the company’s half-year ended 31st December 2015. Hmmm…
With the interims of the leading e-sports business, Gfinity (GFIN), announced this morning, I give myself a pretty strong 7/10 for my preview HERE that I wrote less than a week ago. With the share price down from 14p at that time to 9.625p today, I hope you took heed.
Oh dear, yet another oiler having trouble with its cash. Dual listed on the TSX and the Main Market of the LSE Tethys Petroleum (TPL) lobbed out a bit of a bombshell at no-one-is-watching o’clock last night (at 12 minutes past 6pm on a Friday). Nice one, chaps.
AIM-listed (until Tuesday) Paragon Diamonds has updated the market on its search for a Nomad and the ongoing funding crisis. Merry Christmas, the shares are to be booted off the Casino next Tuesday as it can't find a Nomad to take it on - because the long-promised funding has still not arrived.
You just could not make this up. Out of cash, out of a Nomad and now it seems out of vendors AIM-listed Paragon Diamonds (PRG) has announced (last night - after hours, natch) that the deal to buy the Mothae diamond project has hit a bit of a snag because the vendor has pulled out. But not to worry, they're off to negotiate directly with the government of Lesotho. What with? Fresh air?
ShareProphets AIM-China Filthy Forty member MoneySwap (SWAP) has announced some boardroom musical chairs. In comes Ms. Yu Shu Fen as an executive director looking after business development. The (now ex-) CEO, Mr Richard Proksa has been replaced by the Chairman, Mr Kung Min Lin who appears to be doubling up as both Chairman and CEO - a busy chap, as he is also non-exec chairman at AIM-listed PCG Entertainment (PCGE). Mr Proksa will, however, continue as a director. But what about the (lack of) cash position?
On 1 Oct - almost a month ago - shares in AIM-Cesspit poster-boy Daniel Stewart (DAN) were suspended as the company had, for the second year running, failed to publish its accounts on time. The statement issued by the company referred to a funding package, that it [Daniel Stewart] expects to announce shortly, following which it expects to be able to publish its FY 2015 Accounts and resume trading on AIM.
A difficult few days, I fancy, over at Cloudbuy Towers. Last week Chairman Ronald Duncan had a margin call from Equities First Holdings LLC (EFH) which prompted an RNS stating that Mr Duncan would settle in cash. Then on Wednesday of this week came an after-hours RNS stating that the Interims had been delayed. This morning AIM-listed Cloudbuy (CBUY) finally released those interims (which were not all that pretty) and then promptly followed up with the announcement that the Nomad had quit with immediate effect. Consequently the shares are now suspended. This has implications for Mr Duncan’s EFH package. It is hard to know where to start!
Unloved Canadian copper producer Rambler Metals & Mining (RMM) is to take over Thundermin, its 50-50 joint venture partner in the Little Deer and Whaleback copper projects straddling northern Newfoundland and Labrador on the Atlantic coast. This all-share deal follows hard on the heels of a new C$5 million (£2.5 million) offtake agreement for its flagship Ming copper and gold operation in the same region, for whose proposed expansion it hopes to have finance in place this autumn.
What a fantastic RNS from President Energy (PPC). This morning, the company announced the first conventional oil discovery in the Paraguayan Chaco region, at its Lapacho exploration well. When I last wrote about President, eight weeks ago, I suggested there was “still all to play for”. And so it’s proved to be. Unfortunately, the timing of this news couldn’t be much worse.
Dan Betts, enthusiastic chief executive officer of West Africa-focused gold hopeful Hummingbird Resources (HUM), has lost no time in clinching a $75 million (£44.1 million) refinancing package for the Yanfolila gold project in Mali. Hummingbird acquired Yanfolila last month from South African mining heavyweight Gold Fields. Based in London and quoted on AIM, Hummingbird has obtained the funding from Australian-backed private equity group Taurus Mining Finance, along with a $10 million bridging facility for initial payments, design and engineering at Yanfolila, which boasts a gold resource of 1.8 million oz. with an average 2.8grams of gold per tonne of ore.
Algy Cluff, the veteran resources entrepreneur and former owner of the Spectator magazine, is on the look-out for deals to propel Cluff Natural Resources (CLNR) into the business of turning off-shore coal deposits into gas-producing assets in a way he and the company’s backers claim will be able to provide cheap and environmentally acceptable fuel supplies for years to come. Speculation has suggested potential partners could include German engineering and electronics giant Siemens or Swiss-based chemicals group Ineos, active at the Grangemouth oil refinery in the Firth of Forth, but AIM-quoted Cluff Natural remains tight-lipped.
It is very difficult to put much of a positive spin on today’s bond issue and placement by Xcite Energy (XEL). The funding is extremely expensive, the terms Xcite has entered into are worse than those it previously had and it looks like at least one of the company’s major funders has decided not to continue backing it. This is all bad news for Xcite’s new strategy to commercialise its North Sea Bentley oil field, as the market appears to have priced this project for likely failure. There are a couple of faint glimpses of hope, but I now have to revisit my call to buy this stock, from just over a fortnight ago.
Range Resources’ (RRL) recent announcement, about the proposed $12million investment from Abraham Ltd, based in Hong Kong, sounded like quite a triumph for new CEO Rory Scott Russell. After all, Range was on its knees, production has been falling, money was running out, debt repayments were overdue, legacy projects continued to drag and the company was forced to issue new equity almost every two weeks to cover financing costs. At a stroke, the cash injection bought Mr Scott Russell some desperately needed time, but no one seems to have asked who is Abraham Ltd?