The monthly trading update from Argo Blockchain (ARB) is the usual mix of smoke and mirrors. If you are someone who has waded through the sea of red flags highlighted HERE and still believes there is comfort for you. But if you are a cynic you too will find comfort. Plenty of it.
2021 was not a good year for bears. Markets were in a rip-roaring bull phase and in my view all common sense went out of the window, so even the most ridiculous speculative plays went up. But my strong view is that 2022 will be different: QE is being tapered away, interest rates are rising, inflation is soaring and government helicopter money is no longer there (at least for now). In 2021, bears had to hide behind the sofa and short positions could be attacked by an army of pitch-fork armed private investors. That is not the case now and I expect some hefty declines as a result.
Yes Piers Linney is back. I fill in a few gaps for Mail readers including red flags from the latest venture of disgraced Piers, Moblox Limited. Then it is onto macro predictions on oil, gold, interest rates, inflation, house prices, tax, equity markets and bitcoin. Happy New Year.
After a bumper crop of dodgy RNS announcements on Christmas Eve there was more fun and games yesterday with another slew of dreadful results and other dodgy announcements as more companies joined the craze of slipping out bad news when no-one was watching. But ShareProphets was watching and here is a summary – enjoy!
I hope you have a Happy New Year’s Eve. I aim to be in bed by 8 PM. Bah Humbug. In today’s podcast I look at URU Metals (URU), Lansdowne Oil & Gas (LOGP), Path Investments (PATH), Kore Potash (K2P) and the fraud Supply@ME Capital (SYME) and today’s red flag dripping trading statement. I also explain why I expect the oil price to go higher over the coming year.
It is time once again for our New Year competition. There are, of course, no prizes but the kudos for the winner will be immense. The question is how many dodgy RNS announcements will there be on New Year’s Eve? Who is holding back bad news for a day when no-one is watching? Post your entries below in the comments section.
Inspirit (INSP) snuck out its piss poor results on 29 December at 5.30 pm and today sees its shares down around 14%. You don’t need to be Mystic fecking Meg to know what comes next but a detailed interrogation of those results throws up some ginormous new red flags.
Between now and January 3 all of our writers will be serving up their share tips of the year for 2022. Eighth in our series is a SELL from Evil Banksta. The great bear writes a damning expose of a large cap AIM darling bring new red flags aplenty to the party. :
It looks like its turkey twizzlers only for the morons owning this stock on this Christmas Eve. As I have noted many times, Dev Clever (DEV) has been monstrously overvalued on fundamentals, promoted by ramping and worse. At 30p the company is valued at £180 million which for a loss-making entity, run from a lock up on an industrial estate and with half year sales of just £2.4 million is bonkers. But at least you could trade out of you wanted. You can’t now. The company says that it has asked the FCA for the suspension of trading in its shares. Just like you used to ask the headmaster to beat you for sinning at school. Whatever…
I end with a seasonal message of goodwill to all men. I start with a detailed demolition of Versarien (VRS), Deepmatter (DMTR) whose placing statement is a disgrace and finally of Love Hemp (LIFE) an Aquis dog from Peterhouse Capital where, after today, there are more red flags flying than on May Day in Moscow. It is a shocker. I also have somewhat implausible news about Central Copper Resources.
Bah Humbug! It is that time of year again when crappy companies slip out bad news when nobody is watching as they are getting ready for Christmas. Profit warnings, director share sales, resignations, awful results are the rage on Christmas Eve and as we enter a self-imposed Christmas Lockdown at the behest of Doom and Doomer, this year will be no different.
My anger at the hypocrisy of those who rule us is mounting as I prepare for our first full family meet up since the funeral. After a rant on that count which will have Matthew’s dog in delirious joy I move onto Parsley Box (MEAL) where things are even worse than the trading statement suggests, Good Energy (GOOD) whose profits warning would have delighted Uncle Christopher Booker, the wrong sort of wind FFS, and Bens Creek (BEN) where more red flags emerge.
The highlight of this dossier is Boatman demonsrating how Argo’s (ARB) rebuttal of its allegations about a dodgy Texas land purchase made in dossier No 1, just does not stack up. One might even say Boatman shows Argo was telling porkies. Then there is the really sniffy related party investment in a company in all sorts of regulatory scrutiny because of its involvment with disgraced broker Pello and its “colourful” boss Andy Frangos. And it goes on and on. As Boatman points out, if you believe in electronic tulips there are many ways to play bitcoin without buying into Argo’s forest of red flags. Anyone owning these shares is mad. The dossier is below.
When Oxford Cannabinoid (OCTP) listed in May, raising £16.5 million at 5p I warned you all that its £48 million market cap was a complete rum ‘n’ coke. This company will, in a best case scenario, generate first revenues in 2027 and it will very obviously run out of cash well before then. I reckon the next cash call is within a year. Meanwhile the non-financial red flags mount at an alarming rate.
Shares in Chill Brands (CHLL) have slipped again today to a new year low of 17.75p. Ouch. To think that they were 76p when I published that 60 red flags dossier but of course the bulletin board morons, Seth Freedman et al knew so much better. The question now is about the trading statement and US sales update. What statement you say? Exactly!
If there were not already enough Red Flags flying over sub-Standard-Listed Cloudbreak Discovery (CDL) to supply a parade in Red Square on May Day, this morning’s announcement of a delay in publishing full-year results to June 2021 must surely be the final straw for shareholders.
This weekend’s short letter on the N50 website will look at a company whose shares you can trade. Today, I am feeling pretty proud of my take-down of Standard Listed Umuthi (UHS) whose March 4 IPO was to have valued it at £368 million. A series of articles HERE has seen its sole NED resign and nobody now seems to doubt that this is a complete fraud with no business and that the revelations are truly shocking. Sadly, as it is an obvious zero, its shares are suspended but there are lessons. Here are 10 signs that this was a fraud:
So far you have met the fraudster Queen, the other South Africans on the board who are mired in this fraud and an enabler, broker Pello and its boss Andy Frangos who are also deeply implicated in the Umuthi (UHS) bezzle and the patsy UK NED Colin Bloom - now since resigned. Then we established that nobody actually knows how many shares there are in issue. and finally we established that there is almost certainly no real business at Umuthi whatever it accounts state! And then we exposed the red flags over auditors and the enablers at Jeffreys Henry Earlier today I turned to the resignation of Memery Crystal. Next up is the UK’s regulator and why this episode, again, shows it to be not fit for purpose.
I have already explained why I would not be short of Argo Blockchain (ARB) despite its failure to address Boatman, crazy valuation and other issues. But today’s update on trading in August gives me another reason not to be long.
I discuss two developments at the Welsh Hovel. There is great news HERE but also a bit of a disaster which could have been fatal for the cats and bad for me. Then I look at backing proven failures or chaps who wave red flags mentioning Sensyne (SENS), Nigel Wray, me and a few others. That leads me on to the wall of silence from Central Copper Resources about its AIM IPO and me explaining what is really going on, notably at broker Brandon Hill. Finally I look at today’s news from Skinbiotherapeutics (SBTX) and where, as a result, I expect its shares to be at Christmas.
Hello, Share Seekers. You may have come across a sparkling website called Stockomendation. Among other useful functions, this outfit brings together share tips from all the different sources. Part of the deal is that it supplies a weekly list of the best topical tips.
AIM-listed Catenae Innovation (CTEA) has announced yet another RNS Reach – this time over a deal with Promake Ltd – but it is still, on the basis of its interims to March, almost revenue free and heading for a cash-crunch by Christmas. But never mind that, it’s got a deal with Promake…..which offers yet more Red Flags!
Hello, Share Players. One of the best general strategies in our great game that often bear fruit is the correct handling of the following difficult situation. When to buy a share which has been tipped? There are different rules on timing which apply here. And they’re these.
There are two ways of viewing IQE plc (IQE). One, mine, is correct. The other, as pushed by the share promoters, the numerous corporate brokers and financiers who see its constant demands for fresh debt and equity as something of a gravy train, is not. Let’s start with those who are wrong.
I suggested that having dropped below its IPO price back in June at 3p, sub-Standard Listed Cloudbreak Discovery – nee Imperial X – (CDL) would struggle. Having peaked at 5.5p, the stock is now down to just 2.6p. Shall I save the Ouzo for the footie on Sunday?
Imperial X listed on the sub-Standard List back on June 3rd at 3p per share. The shares quickly rushed up to 5.5p but the share price chart shows a ski-slope ever since, despite a series of ramptastic announcements and a name-change to Cloudbreak Discovery (CDL). This morning we have another ramparoonie……
Having noted the potential for entertainment at Aquis-listed Truspine in the New Year Red Flags Sweepstakes special, when the new listing on the lobsterpot announced disastrous Interims to add to its Christmas Eve announcement of a delay to the FDA application for clearance of its Cervi-LOK product due at the close of the year which apparently it had only just noticed, we have more news……no sniggering at the back!
For 20 years Jeff PressTrip built his name at the Mail on Sunday with his exclusive chats and scoops from Neil Woodford. The quid pro quo was that he blew the man off in print once a fortnight and he ensured that Mail on Sunday Readers ALL owned shares in the doomed Woodford funds. Even a day before Equity Income was gated, the Mail on Sunday urged its readers to show faith. But the corrupt old bastard (PressTrip not Woodford) wishes us to forget that and today again rails against his ex-mate saying how disgraceful is his planned comeback.
We know that the fraud Supply@ME Capital (SYME) is not great on accounting matters, given the three attempts to account for the £224 million deemed cost of the reverse takeover which has now been accounted for as an asset in the balance sheet, then written off to the income statement and now charged to the statement of changes in equity as I outlined on these pages and also the two changes of year end which led to its suspension. I note that it is still in the process of appointing a Chief Financial Officer. A Chief Financial Officer is clearly needed when you look back across the results published by Supply and the apparent inconsistencies as detailed below. Yes here are more red flags for Zak Mir and other morons to ignore.
AIM-listed Mediazest (MDZ) caught my eye this morning: it is currently top of ADVFN’s gainers leaderboard today with a rise of a very impressive 140%, with a share price of just 0.12p – having been as high as 0.175p. There was news of new business wins due to bring in £350,000 of revenues but as we know, revenues are one thing and cash is quite another. But apart from that, it looks like a forest of Red Flags is upon it: have the Bulletin Board Morons completely lost the plot? TW Note did they ever have it?
I was never in doubt that Crowe UK, the auditors disgraced as the firm that signed off on the books of a vast number of the AIM China frauds, would sign off on the accounts for Supply@ME Capital (SYME) for the 9 months to December 31 2019. After all it was just a cash shell back then, awaiting the Supply RTO. But even so what this document tells us should scare, at least some, of this company’s moronic shareholders.
Yesterday, shares in Eurasia Mining (EUA) collapsed, by 50% at one point before closing 40% down at 18p, on news that board advisor Alexei Churakov had dumped 27.4 million shares at 29p. Why do that when a bid is meant to be on the way asked the mug punters? Today there is a statement but it does not wash at all. It fails the smell test.
The big tech stocks have led the US markets ever higher and valuations as a whole for this subgroup look, to me, to be stretched. But I have been saying that for a while so you may choose to ignore what follows. However, while I have compared shorting such enterprises to standing in front of an oncoming express train waving your red flags, is there now a case for shorting Twitter? At $47.42, the market cap is $37.8 billion.
And so New Years’s Eve has come to a close and the Red Flags in the form of no-one-is-watching o’clock announcements (or in one case, non-announcement) of bad news have come to an end.
Oh dear oh dear oh dear. AIM-listed and already suspended pending accounts St James House (SJH) has offered up a rose-tinted trading statement this morning…..oh, and by the way the accounts to January 2020 which were due for release at the end October and were promised in November and then in December will be out in January, honest guv’. It is different this time. But there is one tiny detail the company seems not to have mentioned…….
The good news is that we did not have to wait until after-hours on New Year’s Eve for the latest set of Interim Results to September from AIM-listed John Zorbas POS URU Metals (URU). But the numbers are, as predicted, truly awful – it is Red Flags ahoy from this technically insolvent joke company.
At 1.25pm AIM-listed POS Inspirit Energy (INSP) issued a statement relating to fellow AIM-listed Octagonal, where its CEO and Chairman John Gunn, and Finance Director Nilesh Jagatia also reside in the same roles, whose subsidiary, Global Investment Strategy is Inspirit’s sole broker – the very same subsidiary which has been charged by the SEC – alongside John Gunn, for aiding and abetting – with violating US broker-dealer registration provisions of the Securities Exchange Act 1934. Given that Jagatia and Gunn make up two thirds of the board of Inspirit, there clearly is a problem here!
And so we head for the end of the year – another traditional time to bury bad news by announcing it when nobody is paying any attention, ie on New Year’s Eve. Top of my list for awful results is AIM-listed URU Metals (URU) headed by John Zorbas, which offered up a dreadful half-year report the day before New Year’s Eve last year which demonstrated it was technically insolvent by a big margin. It will surely be no different this year.
The pressure must surely be mounting on Roland “Fatty” Cornish as he tucks into his fourth helping of spotted dick with extra lashings of custard this Sunday lunchtime. The shambles at AIM-listed Octagonal (OCT) where he presides as (London’s worst) Nomad is a shocker, as detailed by Tom Winnifrith HERE. But fellow AIM-listed Inspirit Energy (INSP) – same Nomad, same finance director, same head honcho in the form of John Gunn – is surely at risk of suspension this coming week, and it released diabolical FY results to June at 11.22 am on Christmas Eve.
It is time once again for the greatest British competition on this planet – yes, folks, the ShareProphets Christmas Red Flags Sweepstakes is back! Sadly Ebenezer Scrooge is locked down in his counting house in the City and is too mean to get internet so you’ll have to make do with this missive from Downing Street instead. But let me not disappoint you, for the prizes are as usual, in line with previous ShareProphets policy, magnific….. oh, I’ve just been told by Rishi that there’s no money left. Oh well – on with the Great British Show (and probably the only one in London).
Yesterday I took apart the ramptastic announcement from AIM-listed Catenae Innovation (CTEA) regarding its joint venture with BHA Medical, and showed that the JV vehicle was worth just 10p. But the nonsense does not stop there.
Round at Supply@ME Capital (SYME) HQ it really is starting to look like the May Day parade in Moscow. So here is another matter for promoters such as the Sith Lord Zak Mir and the dwindling band of bulletin board fanatics to consider.
The company is cyber security outfit ECSC Group (ECSC) and in this podcast I dissect its finals from last year, interims, recent trading statement and other red flags leading me to explain why you should not buy into the hot sector argument and should not touch it with a bargepole.
Supply@ME Capital (SYME) is “very pleased to appoint Crowe as our auditor. Their size, international presence and sector awareness should complement very well the platform’s scalability plans and, accordingly, the current company cross-border expansion”. Er, a few things…
Tom Winnifrith hinted at a perceived problem in the last placing by technically insolvent POS AIM-listed URU Metals (URU) and I fear history is about to repeat. Back at the beginning of May the shares raced ahead to 200p and then a placing at 85p was announced. Now the shares have raced ahead again to 285p on minimal volume…..are shareholders about to be plundered again?…
There is a small amount of borrow available to allow you to short Standard Listed Supply@ME Capital (SYME) and after this week you should, if you can, grab it with the shares at 0.44p. The market cap is still well over £100 million and this is a zero in waiting…
On Friday, we were told that Supply@ME Capital (SYME) chairman Dominic White had dumped £1.5 million of shares with a spurious and plainly fictitious excuse. Today, a risible trading statement and the shares are off again. Now are we really saying that the information announced today came as a shock to White? If this is not insider dealing then I am a banana!
And now from Wales, by just 30 yards, it is my new, I hope, weekly video show. This costs 99p per episode, and you can either listen to, or watch, some sparky interviews with bear raider Matt Earl on the markets, the real economy and on 2 stocks where he is short (IQE & Boohoo) and one where he might be soon (Future PLC). we focus on Boohoo. There is also a detailed interview with Andrew Bell of Red Rock Resources (RRR). Its shares are 0.82p and what Bell says is ground breaking. I am on record as saying I shall eat my hat on video if the shares are not 1.26p before Christmas. I now reckon 1.65p is achievable and this is explained very clearly. Finally I return to the liars at Verditek (VDTK), why it is drowning in red flags and more. You can access the show HERE
Can there be any more red flags fluttering over laughable AIM Company Verditek (VDTK)? You bet there are. First up is today’s news of a share issuance for PR services. What PR you say? Exactly.
The spoof continues. Shares in Supply@ME Capital (SYME) a company drowning in more red flags than one sees on a May Day parade in the land of the free, that is Russia comrades, now trade at 0.74p after today’s spoof release valuing this crock at £242 million. Now to explain why today’s news is a 100% spoof and the claims made by the company are pure fiction…
Just how many red flags do you need? Because at this AIM listed company, there are more than you’d see on the annual May Day parade through my old stomping ground of Clerkenwell. Let’s list the Verditek (VDTK) red flags:
Well there is an annoying ex for starters. Then the folks taking the piss on a sash window here at the Welsh Hovel. Then PL defending Katie Potts spunking £1 million of other folks’ cash on Bidstack (BIDS) and why following TR1s is an error. I look at Wishbone Gold (WSBN), trying to be realistic, more cracking news from Xtract Resources (XTR), and at sorting pumping and dumping at Europa Metals (EUZ). No doubt Messrs Laurence Read and Benjamin Turner will be taking me off their Christmas card lists after that. Hey ho. Finally a look at red flag goings on at a company where I have pointed out many red flags before, All Active Asset Capital Limited (AAA).
Shares in Supply@ME Capital (SYME) are currently soaring again, to presently 0.79p – this on shareholding announcements. Hmmm – Warren Buffett buying in? Er, nope…
I start with reflections on how Boris is begging companies to get the workers back to doing a shift at the office. Sory BoJo but in this mess of your own creation you are dreaming. Then it is onto our major expose of securities fraud at Verditek (VDTK) today, where it seems that Old Mother Walters is again batting for the company with a bonkers market cap, no sales, which lies to investors, and which is technically insolvent. What’s not to like? Oh yes and the company’s chairman is a former Tory MP. More red flags than at the May Day rally in Moscow.
(sub-)Standard-listed BSF Enterprise (BSFA) released an RNS this morning entitled “Acquisition”. Given that the company listed on the LSE’s (sub-)Standard list about a year ago as a cash shell with a list of Red Flags as long as your arm, including Mr Denis Ow with a heroic list of China-play failures to his name as Head of Investment Banking, I wondered what this acquisition could be…….another dodgy China-play, perhaps, or something else?
Julie is back and since she seeks press coverage and is also seeking investment into a new great British Company she is, in my view, fair game for comment. No doubt she will accuse me of misogony, obsession and try to get the fine upstanding lawyers she shares with Prince Andrew to harass me (remember what happened last time Julie!) but what follows is a case study in red flag spotting and how to read through aggressive and unusual accounts.
No I am not referring to Ed's stock picking system concluding that the Quindell (QPP) fraud was one of the 10 cheapest shares on AIM. Nor am I referring to it rating the fraud Globo (GBO) as a 92/100 BUY. Or to thirsty Paul Scott using the Stockopedia system to serve up classic buys like IQE (IQE) and TrakM8 (TRAK) This gem from the Stockopedia stock picking system is an even worse call and in fact possibly the worst stock call in history.
In a series of articles running for almost a year I have highlighted a sea of red flags concerning uber-dog Iconic (ICON). Yesterday Iconic announced that it “supports Greencastle Capital bid for Joe Media and discussions on management contract”. The rest of the announcement below provided some more background as follows but trhere were a few, explosive, details Iconic neglected to mention.:
I have already shown that there are more red flags at uber dog Iconic (ICON) than in Moscow on May Day. But after taking a further review of the Prospectus issued on 25 March 2020 and recent RNS announcements I note four more for the collection. Whatever is Tory MP Damian Collins doing getting mixed up in this shit show?.
Tern (TERN) shareholder Lloyd Leckerman argued in his fan mail of yesterday that I penned an article on his beloved POS AIM stock every day. Not to disappoint Lloyd I serve up six more red flags for him to ignore. But first…
Tom Winnifrith has already added to my comments yesterday about the ridiculous aluation of AIM-listed Tern plc (TERN), which even after yesterday’s 25% crash and a further 10% drop today is still monstrously overvalued. Tern is not alone, which brings me on to AIM-listed URU Metals (URU) which has been rising steadily from a low point of 90p on 27th April to the current 200p. So what has been the catalyst for this meteoric rise? After all, URU is – as I have pointed out before – technically insolvent!...
I start with a look at dividends in general and why they should be cut or axed but I discuss - as per today's most excellent article from Chris "Three Brains" Bailey - Imperial Brands (IMB) and Shell (RDSB) in particular. I am tempted to buy both because I think their shares will go up AFTER an inevitable dividend cut. I discuss what a moron Jeremy Corbyn is and my anger at an Oxford institution wanting Government cash. I look at Zenith Energy (ZEN) wondering if it has found more fake sheikhs drawn to the AIM Casino and also at AIQ (AIQ) - which continues to amuse.
The dog’s breakfast that is Schroder UK Public Private Trust (SUPP) – formerly Neil Woodford’’s Patient Capital Trust (WPCT) has announced that Link is taking the hatchet to the portfolio net asset value once again. Oh dear……
Withshares in NMC health (NMC) – a soon-to-be-retired member of the illustrious FTSE100 – now suspended in the wake of a string of revelations over founder and now ex-co-chairman’s share dealing shenanigans, dodgy related party share guarantees which one assumes will haunt the company’s bank balance in due course and apparent discrepancies at the bank, Muddy Waters must be celebrating a seemingly total win. But what of fellow main-market play Finablr (FIN), where the warning signs are surely flashing red for similar revelations regarding the same people but as yet the company is remaining tight-lipped. That surely is a giant-sized Red Flag…
I last published an update about Wellesley Finance Plc on 7 January 2020 discussing the dire results for the year ended 31 December 2018. The results of the Wellesley Group Investors Limited, the ultimate parent, for the year ended 31 December 2018 are now 4 and half months overdue so we cant evaluate how the whole group is performing. But there are yet more red flags now fluttering. the only thing we cannot say is when the car crash will happen.
Of course it is! Muddy Waters may be laughing all the way to the bank with reference to NMC Health (NMC), but it must be kicking itself in San Francisco for having missed out on fellow good Dr Shetty outfit Finablr (FIN). The last we heard from Finablr was a week ago when the company announced that, like NMC – which has now ‘fessed up at least in part – The Company has very recently been made aware of purported arrangements between Dr BR Shetty, His Excellency Saeed Mohamed Butti Mohamed Al Qebaisi and Khaleefa Butti Omair Yousif Al Muhairi which may be relevant to their respective interests in the Company's shares. With at least 56% of the company’s shares pledged and perhaps more if similar undisclosed arrangements to the ones at NMC have been made, there is surely an urgency for the board of Finablr to get to the bottom of this.
Perma dog Toople (TOOP) published its Prospectus today so I took a quick look through the tome and draw out some interesting elements below. Suffice to say the document is strewn with red flags and unanswered questions but demonstrates quite clearly the unacceptable greed of certain City advisors. They will prosper from this deal. Those owning the shares will not and this stock is utterly uninvestable at any price. So here is today’s list lof red flags and questions from the document.
The Times suggests that Muddy Waters may be kicking itself for not shorting both London-listed stocks from the stable of Dr Bavaguthu Raghuram Shetty. Whist its short on NMC Health (NMC) may be doing well enough, Shetty’s other vehicle – Finablr (FIN) has been having a torrid time, with the shares halving since December. Finablr has only been on the market since last May, but scratch the surface and there are many questions which look like Red Flags to me jumping out.
Lucian Miers and I have covered Versarien (VRS) many times, looking at the maths as to why the shares, at 79.5p having fallen back a good bit, are still monstrously overvalued. It was one of Lucian’s sell tips of the year HERE and he, and I, reckon that fair value is sub 10p. Eurasia Mining (EUA) is another AIM casino ramp which, on fundamentals, looks to be massively overvalued. I would not be a buyer of the stock even if it fell by two thirds from the current 4p.
Having announced plans to depart the AIM Casino on Thursday, Cloudbuy (CBUY) slipped out a Director Dealing RNS at no-one-is-watching o’clock last night at 5.47pm showing that departing Chairman Ronald Duncan and his departing CEO wife Lyn Duncan have been dumping shares as fast as they can. If ever there was a signal to follow…….
It seems to be followers of Versarien (VRS) and Bidstack (BIDS) leading the charge but there is another matter as well. suffice to say, this has been a bloody week and as I celebeate my birthday this weekend I wonder how many more years this can go on for. In terms of companies I discuss the hot air at Big Dish (DISH) and the red flags at, soon to leave AIM, Cloudbuy (CBUY). Followers of IQE (IQE) please take note.
There are no guests in this week's show which is sponsored by Open Orphan PLC (ORPH). It is just me once again sitting in the Welsh Hovel as the flood waters rise. I start with a red flags special on Iconic Labs (ICON). The company is an irrelevant and wofrthless POS but the red flags are interesting. Then it is onto a company where I demonstyrated compelling red flags six years ago but I've had to be patient. Finally, using Fulham, Shore (FUL) as a case study I look in real detail at why claims that company's generate positive operating cashflow can be so misleading and why this is so important.If you like this and can't wait seven days for more of the same and are tired of being a cheapskate you should listen to my Bearcast every day.
Last week AIM-listed Inspirit Energy (INSP) released results at no-one-is-watching o'clock, on Christmas Eve Eve. It seems the trick of avoiding ShareProphets scrutiny by releasing bad results the day before good days to bury bad news is spreading, for yesterday – New Year’s Eve Eve - at 4.23pm came interims from AIM-listed URU Metals (URU). Except ShareProphets was watching, always keen to highlight news that companies don’t want you to see. And oh dear, oh dear…..
Catenae Innovation (CTEA) snuck out another profit warning on Friday at 5.02pm – truly no-one-is-watching o’clock, telling the market that its trading performance continues to be below management expectations as notified on 11 September and its financial position remains weak. Oh dear, of dear – things aren’t getting any better for the former Milestone Group (MSG) showing once again that Warren Buffett’s adage that when a bad company meets good (or only slightly better) management, it is the reputation for the former which prevails.
AIM-listed property company Trafalgar Property (TRAF) has been a serial deliverer of bad news since it came to AIM and yesterday was no exception as it served up yet another round of disastrous results as it reported interims at 4.23pm in the run-up to Christmas – truly no-one-is-watching o’clock. And what happened to its sole broker, Peterhouse?
Why would a company which claims to have had a year….of highly encouraging progress sneak out its results at approaching quarter past five in the evening – no-one-is-watching o’clock? Let us turn to the auditor’s report for AIM-listed Conroy Gold and Natural Resources (CGNR) in its Annual Report for the year to May 2019 – in particular the Going Concern section. Here we are told:
I lose count of how many warnings cash guzzling chip producer IQE (IQE) has now issued in its current sequence but, as I predicted, another one has arrived. The worry must be now that iby Q2 2020 it will find itself right up against the limits on its new £57 million bank facility.
Having as recently as June been sub 50p, shares in self-styled “a leader in the discovery, development and delivery of novel RNA therapeutics for the treatment of serious diseases” Silence Therapeutics (SLN) spiked above 100p in July on the back of announcements of a collaboration with, and investment from, Mallinckrodt (NYSE - MNK). The shares have in the last month sparked significantly further – to a current near 400p, giving a more than £300 million market cap. However…
I stress that as far as I know Adam Reynolds has nothing whatsoever to do with AIM-listed jam-tomorrow IoT Investment Company Tern (TERN) but it seems that Tern has borrowed his keyboard to offer up this morning’s portfolio update – where there are no meaningful numbers. More to the point, there is still no comment on the apparent $10 million fundraise by its principal investee, Device Authority (DA), which suggests to me that the whole story was utter poppycock and the market should have told so. But instead, Tern got a placing away – for the second time in its history. However, the few numbers offered are truly alarming.
I fear that it all looks very bleak for Management Resource Solutions (MRS) a company we have red flagged her numerous times. In this podcast I look at the big red flags and other companies flying the same sort of red flags.
Bear raider StockViews has published a damning dossier on Learning Technologies (LTG) arguing that the shares, now 104p, are in fact worth just 40p. The note is titled “A lesson is misdirection” and makes compelling reading. It states:
Soon to be ex-fund manager, Neil Woodford has not taken the decision to wind up his flagship Equity Income Fund and fire him at all well, as you can see below. But he is disgraced, will soon lose his other mandates and will almost certainly now face a full FCA enquiry. None the less some of his followers have not lost faith. Some folks are just so daft...
Shares in this posterboy for the AIM Cesspit fell in morning trade. Pure coincidence natch! Nothing to see here officer, move along quickly please. At 2.20 PM the Oxymorons at AIM Regulation suspended trading in a company we have pointed out is drowning in debt and red flags and is almost certainly worthless on many occasions as you can see HERE. At 4.01 PM Management issued a statement. You cannot make this shit up. Only on the AIM Cesspit.
Yesterday’s big disaster for Neil Woodford was Oslobors-listed Thin Film (THIN). Given that Neil has already lost most of his money here already yesterday’s news won’t count as a financial disaster. But yet another dog on the verge of insolvency will – and once again we have the plain fact that Neil can’t bail it out because he’s got no cash being demonstrated to all. And to underline its mega-dog nature, this company once again clocked up an entry in the Red Flags at Night register, with a filing at half past midnight last night telling us of another sale of its shares by Neil Woodford. Half past midnight!
We missed this one. we cannot spot every car crash waiting to happen. But we did give an alert of sorts. Week in week out, Eddie Stobart Logistics (ESL) featured in Steve Moore's table of the most shorted AIM shares. When bears hunt in packs, like this, they are rarely wrong, especially when the biggest cheerleader on the other side are Bulletin Board Morons or, as in this case, Neil Woodford. So what were the red flags? There were three big ones:
I start with a discussion of how young and inexperienced most sell side analysts are and why that bodes so badly for the horrors that will emerge in the coming bear market. I move onto Versarien (VRS) a pointless deal and accounts that contradict themselves, I look at Burford (BUR) and the sex tapes allegations as well as my own on Napo and then finally at forex service ProphetFX which is drowning in red flags as is AIM Casino rubbish Nostra Terra Oil & Gas (NTOG)
In early 2019, I wrote a series of articles on what has become a widely known minibond scandal. On 6 January 2019, I flagged up a swathe of red flags at London and Capital Finance Plc (“LCF”) (now in administration). On 3 February 2019, I asked whether Blackmore Bond Plc was another minibond disaster in the making? Well it looks increasingly like that was yet another incredibly prescient call, the latest warnings signs are:
I was once a believer as shares in the satellite company Avanti Communications (AVN) soared to 800p+. But I saw the light many moons ago. Today they languish at 0.5p as the company has announced that it is to delist from the AIM Casino. For six years this website has been warning about this disaster in waiting now we are 100% vindicated. Are there lessons to be learned? You bet....
Last week’s saga of Burford Capital (BUR) illustrates well the febrile state of the markets right now and shows how easily ruffled both retail and institutional investors can be in the scandal-prone junior market...
Yesterday a new name joined the Standard List of the London Stock Exchange: that of BSF Enterprise (BSFA). It is yet another cash-shell to join the sub-standard list – as if we really needed any more – but a name sprang out at me and that name rang a bell.
Dev Clever (DEV) listed on the Standard List in December at 1p with some true rogues subscribing for placing shares. One of them blogged a thesis that the shares were worth 50p (a £200 million market cap) and that sort of ramping saw the shares reach 13p. Today they are sharply down at 3p to sell after the release of dire interims.
I start with a look at how well meaning Government intervention in the free market can often have dire economic consequences. then in light of 24 hours of abuse from Neill Rickets and his cultist followers I look at some of the Versarien (VRS) Red flags.
In today's bearcast I look forward to the new show on Wednesday which will be half recorded by the end of today. I cover Mortice (MORT) a tale of shareholder woe friom the AIM Cesspit, Kier (KIE), Dev Clever (DEV), Anglo African Oil & Gas (SCUM), Premier Technical Services Group (PTSG) and Mobile Streams (MOS), where I study what happens to cashflow when a company is near to death and the red flag gaps in today's trading statement.
For a company that will have net current assets of somewhere between SFA and £30 million by Christmas and which will again burn cash this year the valuation of Purplebricks (PURP), £314 million at 103p, is bonkers. In light of that I revisit full year numbers from Wednesday and ask you to consider a stack more red flags.
Premier Technical Services Group (PTSG) has updated including “pleased to report that the group has seen continued sales growth and strong levels of orders in the year to date” and “the recent acquisitions of Guardian and Trinity are performing ahead of management expectations. This underscores our confidence in achieving a successful full year result in 2019”. The shares though, although well up from recent lows, are still down from more than 150p as recently as early this year to still sub 100p…
In today's bearcast I look at "lucky" Luke red flags and Patisserie Valerie, Neil Woodford, Babcock (BAB) and sumbag, lying or disingeneous, pond life journalist scum such as Ali Hussein, Sabah Meddings, Jamie Nimmo and the fraudster's fave journo Ben Harrington.
In a private email to key clients a top broker has today suggested that, £600 million capitalised (at 460p), On The Beach (OTB) will have served up THREE profits warnings by early 2021 and that the shares are worth 300p, tops. I have obtained that email which is below:
Neil Woodford, Britain's best known fund manager has seen his empire start to crash and crumble today with a suspension of dealings in his flagship fund. Some in the corrupt deadwood press, like the Mail on Sunday, were still praising Woodford yesterday. Others have turned bearish over the past few months having previoously drunk the cool aid. But for almost two years we have been calling this out as a debacle waiting to happen, you can see our full, and incredibly detailed, coverage HERE. Site Editor Tom Winnifrith gave a keynote address at UK Investor 2018 predicting exactly what would happen and highlighting numerous red flags. You can see that video, now shown to be UK Investor at its finest, below
In today's bearast I take a detailed look at Sub Standard list Bermele (BERM) which is over-ramped, dripping in red flags and been pushed by shamed Bulletin Board Moron Aberdeenman. I also explain why I shall, tomorrow, be asking the Met to investigate whether Julie "lingerie on expenses" Meyer and her lawyer Peter McGrath might - as a result of this - be perverting the course of jiustice as I have news on the FCA's criminal investigation into Meyer which seems to be ratcheting up. I am not accusing either of this serious crime merely asking the Met to see if something awry is taking place.
I noted yesterday that Neil Woodford was suffering a Bad News Day. Steve Moore covered his investee Time Out Group HERE, the latest disaster (or, rather, lack of good news) from Thin Film, of Woodford’s Norwegian kennel is HERE (and the shares are down heavily since the article appeared) and his latest bad news from WPCT is covered HERE. And of course there is another slew of unhappy coverage from the deadwood press. Next up is the joke NEX-listed Proton Partners (PPI), which released its FY numbers to February.
WARNING: Our apologies, this Bearcast has distorted sound from after ten minutes, when Tom recorded it. It is still audible. We'll try to fix it for tomorrow's Bearcast. I start with a short bit on the wild use of language and yes the trans "genocide" is my starting point. I look at IQE (IQE), Thomas Cook (TCG) and classic red flags - Eight Peaks Group (8PG), Yu (YU.), Bushveld (BMN) and Tesla (TSLA). If you have yet to donate to Rogue Bloggers for Woodlarks (another announcement tomorrow), please do so HERE.
This week saw a bit of a landmark as Neil Woodford’s Equity Income Fund (EIF) crashed below £4 billion in value. It was £4.7 billion at the of February, and £4.4 billion at the end of March – but it peaked at over £10 billion. It is an astonishing collapse of confidence in Woodford. But the end-April numbers revealed a few surprises.
AIM-listed diagnostics play Novacyt (NCYT) announced a death spiral deal on 23 April 2019 and at 6.23pm on Friday evening it slipped out details of the first two rounds of conversions – at no-one-is-watching o’clock….except ShareProphets was watching. It is also listed on the Euronext Growth market (ALNOV), and joined AIM at the back end of 2017 – since when it has been heading heavily southwards, as you can see from the chart below.
Here haven’t been so many diabolical after-hours announcements as there used to be, but ahead of the Easter double bank holiday – at 6.19pm on Thursday evening – AIM-listed Modern Water (MWG) showed that the tradition is alive and kicking. Its investors might have gone home but ShareProphets was watching….
This is utterly bizarre: on 28 March AIM-listed POS Management Resource Solutions (MRS) announced the acquisition of Alerion Consulting Ltd from its founder, Elliott Talbott, and others for a consideration of £1.32 million to be satisfied by the issue of MRS confetti at 5p per share and we were told that an application for admission to trading of the consideration shares on or around 4 April would be made. Now, on 5th April – at 9.38am – we learn that the application to have them admitted to trading hasn’t been made at all, yet the acquisition completed on 28th March!
AIM-listed member of the ShareProphets AIM-China Filthy Forty, China New Energy (CNEL) has announced a £1.118 million (before expenses) convertible loan with an entity called Double River Limited of the BVI. With the shares previously at just 1.125p, the conversion price of 4.7p seems a little on the too-good-to-be-true side of things, and is conditional on China New gaining a listing on a stock market in Asia. What’s not to like?
AIM-listed Sensyne Health (SENS) was spun out of Drayson Technologies and joined the Casino last August, raising £60 million in the process and has just published its first set of accounts as a listed company. No doubt Neil Woodford will have enjoyed the market response as the shares put on 7% (Woodford holds 20%), although not enough to extinguish his pain at Utilitywise (UTW) as the latter announced the dreaded “strategic review”. I doubt he will have enjoyed Sensyne’s ride as a plc either, as the IPO was at 175p per share and even after this rise the shares are 167p. Hardly a cracking endorsement! So what does Sensyne do? Well, it is – of course – disrupting its world! According to Woodford:
A note from the celebrated Cynical Bear last night got me looking into one of the very first investments made by Neil Woodford for the Woodford Patient Capital Trust (WPCT) – that of AIM-listed Verseon (VSN). Dum dum-dy dum, dum dum-dy dum, you’ll see the Red Flags flying here……Surely this shows all that is wrong with Woodford!
AIM Casino listed Independent Oil & Gas (IOG) is dependent on financing from London Oil & Gas which in turn is dependent on financing ( repayable on demand) from a ponzi called London & Capital Finance now the subject of a full FCA raid and lockdown. We have covered this extensively already but there is more...
I have already highlighted how London and Capital Finance Plc (“LCF”) is the principal lender to Independent Oil and Gas (“IOG”) via London Oil and Gas (“LOG”) and raised concern about those arrangements. Looking at the parent of LOG and its subsidiaries raises a whole series of red flags which is not only bad news for holders of LCF minibonds but also shareholders in IOG.
Well the year is up, the results are in and my pick of five AIM stocks to sell has offered up a pretty good result. I doubt these shares could easily have been shorted, but I hope readers managed to avoid them at least.
There were two enormous red flags waving at NetScientific (NSCI), the healthcare IP commercialisation group. The first was the announcement a few weeks ago of a “strategic review” which in plain English means “we are fucked” and the second was that Britain’s worst performing fund manager Neil “Nomates” Woodford owns 47% of the company with the funds he used to manage round at Invesco owning another 19%. And so to today’s disastrous news.
Inheritance tax is a wicked double dip tax on the prudent which a real conservative Government would scrap. But until Pritti Patel MP sweeps to power we must try our best to minimize its impact. One way to do this is by investing in certain AIM stocks which are IHT exempt, for reasons I fail to comprehend. You want shares that will, at least, hold their value and Robert is your Mother's Brother. VSA boss Andrew Monk and his fund manager brother have devised such a portfolio for their mum.
Last Night at 4.39pm – after hours at no-one-is-watching o’clock, ShareProphets AIM-China Filthy Forty member (one of just seven remaining) China New Energy (CNEL) issued a Trading Update. Except the meat of the dish was not about the company’s trading, it was about trading in its shares. We are told the Company is currently considering and assessing all the options available for fund raising in other stock exchanges. Aha - it is voluntary execution ahoy!
A “Trading Statement” from self-styled “international designers, manufacturers and distributors of innovative floor coverings” Victoria plc (VCP) emphasises early; “The group is realising the benefits of the growth and diversification of the business over the past few years”. A positive trading update then… You what? The shares are down approaching 25%, to 455p?!?...
It really is the 17th, I may have said it was the 16th at the start of this bearcast as I have spent a frantic day trying to make the Bat Room at the Greek hovel a bit less untidy ahead of the arrival of the Mrs and Joshua tomorrow. In the podcast I discuss BlueJay Mining (JAY), red flags, SP Angel and MySquar (MYSQ)
I am now back from my 12-14 mile walk of which the first six were solidly uphill. I have posted details of what happened on my own website HERE - it was an adventure. Think of me trekking up the mountain road and please make a donation to Woodlarks ahead of my 32 mile walk with Dan in two weeks time. Donate here. In today's podcast I look in detail at Audioboom (BOOM) and its statement of yesterday. And I flag up some more red flags regarding Telit (TCM).
ShareProphets AIM-China Filthy Forty play China New Energy (CNEL) put out its full year numbers for 2017 at 7am on deadline day, last Friday. It boasted significantly increased revenues and profits, so all’s well? Er…
Back in May last year, Frontier Smart technologies (FST) was one of my few conviction buy picks at around 90p (HERE). After a strong initial performance, the share price has dropped significantly recently but the truth is that the alarm bells should have been ringing well before now. Please allow me to self-flagellate.
A couple of pieces from me today to remind investors to heed warning signs, the second of which shows that I am prone to the odd piece of blindness now and again too! First though, I’ll pat myself on the back and take a look at the latest news from Autins Group (AUTG) that I first warned on at the start of last year (HERE).
On 28 December 2017, ShareProphets AIM-China Filthy Forty play Aquatic Foods Group issued an RNS stating that it couldn’t publish accounts for 2016 and the shares would be booted off AIM the following morning. Of course, there’s a lot more to that and ShareProphets had been predicting the demise for months. Now the patsy NEDs have issued a statement and it is clear that ShareProphets was right all along.
ShareProphets AIM-China Filthy Forty play Origo Partners (OPP) issued a stonking warning on Friday night, at 5.30pm going into a bank holiday. Talk about no-one-is-watching o’clock. I previously warned in the light of a previous warning (HERE) that the question was whether the asset realisations will generate anything at all for shareholders after holders of the Zeros (whose money appears not to be contributing to OAL’s new fees) have been paid off. Last night’s RNS suggests the answer may well be nothing.
Telit Communications (TCM) has announced results for the 2017 calendar year, emphasising “trading in the first quarter of the current financial year was strong and well ahead of last year… we are confident that our performance in 2018 will significantly improve and see double-digit growth, stabilised gross margins and the implementation of cost optimisation”. Hmmm, “significantly improve” from where? And how’s that balance sheet?..
Thumbing through the top list of losers today I can’t help but notice that AIM-listed Sabien Technology (SNT) is top dog, so to speak, having dropped 36% today on no news. I wonder what is behind this drop! Does somebody know something?
ShareProphets AIM-China Filthy Forty member (pro tem) Haike Chemical (HAIK) issued a trading update for full year calendar 2017 at 10am this morning. Uh-oh….
Suspended today becuase the market is disorderly, AIQ (AIQ) listed on the Standard list just two days ago at 8p per share, raising £3.6 million. It is a special purpose acquisition company incorporated in the Cayman Islands and formed to undertake one or more acquisitions of target companies or businesses in the e-commerce sector. Er, so it’s got no business at the moment and just £3.6 million (minus costs) in the bank and is now worth an incredible £62.5 million! Bollocks.
Yesterday I described the FY17 results of Karelian Diamond (KDR) and a series of Red Flags to be found. Today we look at its stable-mate, AIM-listed Conroy Gold and Natural Resources (CGNR) and find a similar story. It is a car-crash festooned with more Red Flags.
Drowning in debt and red flags POS Green Dragon (GDG) admitted on 30 October that it was in talks with bondholders to push out repayment terms and it promised that those talks - which had been undserway for a while - would be concluded by 20 November. Well maybe not.
When Fishing Republic (FISH) joined the AIM Casino at 15p in June 2015 it published an admission document bulging with red flags which I pointed out in numerous articles HERE. But brokers Northland pumped the stock shamelessly up to well over 40p to get away more placings. But today the shit hit the fan with a shock (lack of) profits warning but the maggots are only now starting to emerge. At 22.5p this is a zero in waiting.
Of course when I was a crony capitalist I spent a couple of years in the Isle of Man with its progressive tax system. That was all legit, it is called tax avoidance (legal) not tax evasion (illegal) but it is clear that the IOM facilitates a stack of illegal tax evasion. I am not shocked by the Paradise Papers revelations on this and explain why. Elsewhere there is follow on work on Totally (TLY) looking at more red flags and the vanity of sales, then coverage of Red Emperor (RMP) and P:aragon Entertainment (PEL)
Just a short bearcast today as I had to rush off for my regular Thursday morning date with the Fit Young Mums. In today's podcast I talk about the IPO/RTO today of Sosandar (SOS) which we own shares in and I reveal the first of the celeb investors. Then it is onto Playtech (PTEC) and some wider thoughts on gambling regulation in the UK. Finally there is a look at Rosslyn Data (RDT) where - hat tip Roger Lawson - it is surely profits warning ahoy. I look back at the numerous Rosslyn red flags.
I apologise to another Anglo-Irishman for the misquote. The advertising watchdog the ASA has for the fourth time in 18 months slammed Purplebricks (PURP) for lying to potential customers. Let's bve clear: companies with a good product can afford to tell the truth. Natch Purplebricks says it has changed its adverts and there is nothing to worry about. But that is on just two days data....
Readers will know I have no love for MySQUAR (MYSQ) for reasons outlined earlier today; however, I had to laugh at yesterday’s announcement of an MOU agreed with Sealand Capital Galaxy (SCGL) as it is arguably an even dodgier company than MySQUAR – clearly a match made in heaven.
A questionable business model,shocking revelations on Watchdog, very murky management CVs exposed HERE, a complete lack of profits, a sky high valuatione, endorsements from shareholders "nomates" Neil Woodford and Roger Lawson as well as being tipped in the Godawful Midas Column in today's MoS- what could possibly go wrong for Purplebricks (PURP)? To justify its most recent keep the lights on fund raise it had to promise a new expansion strategy. And so on Friday it announced a US Launch. Natch it starts off with patently bogus internet reviews as you can see below. The Yanks are so dumb they will not notice will they?
It’s that time of year again when companies with bad news to slip out at no-one-is-watching o'clock are offered a golden opportunity to get away with it. What better time of year to go for than the end of the summer holidays and the Friday evening before a bank holiday? And so we offer a no-prize sweepstakes: how many dodgy RNSs as adjudicated by the Global Shorting Conspiracy will be released after 4.30 today? Deadline for entries is 4.30 in the coments section below.
Having reached more than 75p in May, shares in information management technology and services company Idox (IDOX) declined below 60p early last month before recovering above 65p - then declining towards 60p again. The company is now “pleased to announce that it has acquired… Halarose, a supplier of electoral back office software and services to UK local authorities, for £5.0 million, comprising £3.5 million in cash and £1.5 million in shares” (at 61.5p)…
After my earlier story about the covenant breach which is, I am increasingly sure, a smoking gun, I explore some trends shown by the financial statements of Telit Communications (TCM) that may have been some the red flags that resulted in hedge funds making Telit the most heavily shorted AIM company - this is all about the balance sheet. It also highlights why some type of fund raise, equity or debt, was almost inevitable in May - without it the lights would have been switched off by now.
I have just posted my analysis of today's disastrous interims from Telit Communications (TCM). This company is just drowning in red flags and the shares have crashed from 340p on May 25 when CEO Oozi Cats flogged £24 million worth to 156p. I could see this being a zero as explained in full HERE. But perhaps Oozi can help me on a few timeline issues just to explain why he is not an insider dealer. In return I have a special musical video just for him below...
I am not sure if Neil Woodford had a big stake but Telit Communications (TCM) ticked all the other red flag boxes for AIM casino disasters waiting to happen. UK Investor Show attendees know that this has been high on the bear's hit list for a while. Today the train wreck happened and as I write, shares in what was the most shorted stock on the casino, are 39% down at 156p. But a £199 million market cap is still a rum and coke. The shares could be 20p and I still would not buy. Pro tem I count this as another big win for the Sheriff of AIM.
AIM Casino uber-ramp MySQUAR (MYSQ) 'fessed up on Friday that, as I had revealed 24 hours prior, a placing was underway but it insists that it does not need the cash. Really? I want you to consider a few numbers.
ShareProphets AIM-China Filthy Forty play Aquatic Foods Group (AFG) has released news of its delayed FY16 numbers in an (almost) no-one is watching o’clock RNS yesterday, released at 4.26 pm – 12.26am local time in China. Goodness me, they must have been putting the wording together for hours! Needless to say, there are still no accounts. In my view the whole thing is a joke and Nomad SP Angel is being made to look foolish: take a look at the directors’ page of the company website!
Yesterday I flagged up that, according to a reliable source, MySQUAR (MYSQ) was trying to get another bailout placing away. As ever, the Bulletin Board Morons mocked me. Well guess what happened at 7 AM today?
ShareProphets AIM-China Filthy Forty play Aquatic Foods (AFG) shares were suspended last month because it couldn’t get its accounts out on time. We were told that this was because of difficulties getting its enormous cash-pile out of China to pay a number of parties whose assistance is required for the finalisation of the audited accounts. For that, we might presume that it includes the audit firm. We were told that the accounts were anticipated to be released in July – and here we are with 6 trading days left. Is it crunch time?
In a brochure boasting of its (dis) services to the capital markets, auditor PKF Littlejohn proudly lists some of the clients it has helped bring to London’s capital markets (some of which it also audits). The roll call of shame includes:
AIM ramp de jour MySquar (MYSQ) has today boasted that in the last days of June as daily sales reached $8500 "the business has reached a very significant milestone of achieving run rate operating breakeven". Er..can you smell the red herrings - they are hidden underneath the red flags.
Though this was posted on ADVFN, the poster was Leon Boros of Sharesoc who is no moron. It raises some massive red flags about IDOX (IDOX) and having read it this I rather conclude that this is a share one does not have to own.
If ever there was a demonstration of how price is not the same as value when it comes to shares it was Fusionex (FXI). Time and time again we pointed out the red flags yet the company maintained a market cap of up to £100 million. that was £100 million too high. Now, after five years in which £55 million has been transferred from UK Investors to Malaysia the company announced after hours on the Friday before the bank holiday weekend that it would delist. Its shares have crashed to 42.52p (the last fund raise was at 325p) but that is still way too high. And Britain's top share blogger, the fitness guru Paul Scott has weighed in and agrees with me.
Dear Chris Akers. Excuses are like arseholes. We all have them. And no-one cares. And that brings us to today's announcement from your company Concha (CHA) regarding its disastrous investment in failed unicorn Ve Interactive.
Despite there being stacks of red flags Concha invested c £4 million in Ve in a £1 billion valuation, a decision which we pointed out at the time was completely bonkers.
BNN Technology (BNN) published its Annual Report last week along with an update on its current cash position and the appointment of a new Non-Exec Chairman. The share price has rallied 6% but is still shy of the 80p at which broker Mirabaud recently raised £25 million - and, looking through the bluster, there are some serious issues that holders might care to consider.
Nomad Cenkos was repeatedly warned by myself and others about the fraud at Quindell (QPP). It banked fees of more than £12 million and did nothing to stop the wrongdoing. In doing so it brought AIM into massive disrepute. Now there is evidence that it is turning a blind eye to horrific red flags at Mercantile Ports & Logistics, which at 8.5p is capitalised at £32 million. My target price is 0p but what the hell is Cenkos playing at? I break my break to deal with the errant Nomad - I have a score to settle here since some of the money it raised for the Quenron fraud was used to harass me with fascist lawyers letters..
It seems that AIM-listed Advanced Oncotherapy (AVO) is so desperate to get out any good news it can that it rushed out an RNS yesterday morning to notify the market of director buying and got the numbers wrong. Oops. Great work in checking and verifying there by Nomad Stockdale Securities.
Telit Communications (TCM) is still the number one most shorted share on AIM, even after releasing final results last Monday that were welcomed by the market and saw the shares soar 14.6% to their peak of 360p on the day. But with 10.5% of the stock out on loan to the alleged “smartest guys in the City” you have to ask yourself “What exactly am I missing?” So began my thought process as I sat down to dissect the accounts. Here are some quick thoughts:
ShareProphets AIM-China Filthy Forty purveyor of all things fishy, Aquatic Foods (AFG), has updated on 2016 Q4 trading this morning. In a statement plastered with Red Flags it would appear that the company is nearing the final chapter of the China Norfolk playbook as we are warned that there has been a spot of bother getting cash out of China. Is it bye-bye to the dividend?
Almost exactly a year ago, investment vehicle Concha (CHA) spunked £4 million on a 0.43% stake in new media darling Ve Interactive a deal and valuation that I branded as "insane". Hey ho, today's Sunday Telegraph suggests that the Sheriff of AIM is right once again.
I answer an email from a reader who reckons the Vlachs, (world's greatest living expert, or so he says, Dr TJ Winnifrith), are really Jews and that opens up a wider issue of Jewish settlements in Greece. Then the main issue of the podcast, why Avanti Communications (AVN) will go to Zero? Quite simply its business model is flawed. There are other red flags to consider but I strike at the crux of the matter.
In today's podcast I look at the new rules Aviva is implemententing in the name of gender equality. They are not needed and are bad news for all concerned. It is yet another sign of how Britain is losing the plot on capitalism. I then offer up three clear signs that we are at a market top and why it pays to be very wary.
The ouzo refers to the latest crushing blow for snakeoil salesman Darren Winters. This man has claimed to have fleeced, sorry trained, 500,000 Britons yet still the deadwood press fail to report on our takedown of the charlatan. Pathetic. The bathtime refers to the CEO of Tracsis (TRCS) who claims to listen to bearcast in his bath. I comment on today's trading update. Then it is onto China fraud Jiasen (JSI) and its latest bollocks news signed off by low life Nomad Cairn Financial. And then after an en passant look at Polemos (PLMO) I take a very detailed look at Blenheim Natural Resources (BNR) which is overvalued hype with a bushel of red flags thrown in for good measure. I advise my pal Big Dave Lenigas to take profits and sell and others to do likewise.
ShareProphets Aim-China Filthy Forty play Taihua (TAIH) is having a giraffe. The buy-back announced last August, to be paid for from an Open Offer long since completed hasn’t happened. There has been no update on the matter since the end of September. The accounting matters over related party receivables which the company, in its FY15 Annual Report promised an update on has seen no further comment. The website has disappeared, meaning that the company is in breach of AIM Rule 26 – a matter I raised with AIM Regulation on 29 December last year.
I revealed yesterday how the ramptastic boss at uber-pump Harvest Minerals (HMI), Mr Brian McMaster, had branded Lucian Miers as an "internet troll" for having the temerity to (rightly) call the shares as a sell at 21.5p. The outrageous behaviour of this spivvy promoter makes me look at the shares, now 17.25p to sell, and I have to say that it is "red flags ahoy" - Lucian is 100% correct.
Cynical Bear is probably onto his second bottle of ouzo by now thanks to today's news from Challenger Acquisitions (CHAL). Mr Bear has warned you time and time again about the numerous red flags associated with this company and indeed made it one of his two sells of the year with a target price of 0p HERE. And today we learned that after just 358 days with the company the chairman John Le Poidevin has resigned. It gets better if you are Mr Bear. Have another ouzo.
In the face of relentless pressure from this website, embattled Advanced Oncotherapy (AVO) yesterday put out a statement attempting to draw a line in the sand over its falling out with Sinophi, whom it had claimed was set to buy $120 million of machines from it. It has failed. the statement begs even more questions and the shares remain utterly uninvestable.
How is that for a Thanksgiving mixed metaphor of a title? In this podcast I look at denial, red flags and bending the rules on the Casino. Among the companies covered today are: Advanced Oncotherapy (AVO), Cloudtag (CTAG), African Potash (AFPO), Fastjet (FJET) and the insider dealing, Mkango Resources (MKA), London Capital (LCG), Audioboom (BOOM), Milestone Group (MSG) and I flag up that Steve & I have a hot share tip you can access for just £5 coming up very soon HERE
Shares in ShareProphets AIM-China Filthy Forty play Aquatic Foods (AFG) put on 35% on Friday, following release of a third quarter trading update. Drilling through some of the numbers they seem to be impressive, begging the question of why an apparently profitable and cash-generative company which is drowning in cash worth about three times its market capitalisation would be considering its dividend policy, having chopped the half-year payment by 71%.
A slight tweak in the ShareProphets business model means that as of November 1st nearly all, of the e-books that I have penned will no longer be available for free on this website - you will have to buy them on Amazon. So you have just TODAY to get free copies of titles such as "The 49 Golden Rules of making Money from Shares" as well as the 49 Red Flags book and the book Ben Flip Flop Turney and I produced on how to value oil, gas and mining shares. The same applies to Zak Mir's crap e-book on charting.
At risk of sounding like a broken clock, ShareProphets AIM-China Filthy Forty play Taihua (TAIH) announced a comical open offer which, apart from a bit of working capital, was to fund a share buy-back. That was back on 25 August – more than two months ago. So where is it?
There are many smaller companies on AIM that are heading for zero as they are either almost out of (other folks) cash - Avanti Communications (AVN), IGAS (IGAS) or are plain frauds like African Potash (AFPO) nor Cloudtag (CTAG). But if you are a looking for a big company with plenty of borrow that is ripe for a share price collapse look to Israeli tech stock Telit (TCM). At 278p the market cap is a monstrous £321 million, call it $400 million. That is a rum n coke.
Dear reader, it's one of the most important holidays on the calendar today, Thanksgiving. The real one. The Canadian one. Oh sure, next month we'll hear all about the US holiday and where to buy turkey and it's related treats, but remember who did it first.
Well done to ShareProphets AIM-China Filthy Forty play Haike Chemical (HAIK) for being first to stick its head above the parapet this week with the release of its interims to June. One down, nine to go. The PR reads well enough: profitable for the half, lots of cash in the bank. That’s the spin – but what about the Red Flags – such as negative net current assets?
In the curious world of ShareProphets AIM-China Filthy Forty play Taihua (TAIH) we have now had the result of the Open Offer which was announced in order to raise funds to pay for a share buy-back. I’ve got a great idea to get Jeremy Corbyn elected into Downing Street: let’s raise the basic rate of income tax in order to fund a cut in the basic rate of tax. I digress….This is, of course, all from a company which saw its Auditor issue a going concern emphasis of matter and a qualified opinion on its FY15 accounts in relation to trade receivables.
Still no lawyers letter from African Potash (AFPO) has arrived at Sheriff Towers. It really is like waiting for Godot. But at least my mother in law has remembered that it is my wedding anniversary tomorrow. I discuss another thing happening tomorrow, that is to say African Potash which has no cash having to repay $1.1 million to its FD's Mrs, Katrina Clayton. I look at Highland Natural Resources (HNR), Gulf Keystone (GKP), Glenwick (GWIK), Opera (OPRA) and then Gable (GAH) which really has posted a most enormous red flag today. Sell - target 0p.
Well this is a most bizarre situation. ShareProphets AIM-China Filthy Forty play Taihua (TAIH) has announced an underwritten one-for-three Open Offer at a 134% premium so that it can fund a share buy-back (and keep back a few quid for working capital). Has the company been taking too many doses of its own medicine?
Shares in Haike Chemicals (HAIK) have more than trebled since the spring but do not get suckered in as this is almost certaintly just another common or garden AIM listed China Norfolk. I am grateful to a correspondent in China who writes:
I noted a week ago, here, that Audioboom (BOOM) shares were weak and that since it was running out of cash I reckoned a placing was afoot. Lo and behold there is indeed a £2.55 million placing at 2.5p today but there is also a stream of other announcements which are a red flag festival. This is a horror story.
DIRECTOR PURCHASES SHARES screams the headline – in capitals - of an RNS from AIM-listed Frontera Resources (FRR) - not to be confused with Frontier Resources - this morning. Ooooh quick, let’s all pile in – follow the money, as they say, because the insiders know what’s really going on. Er, hang on a moment….
Insolvency, restructuring and property services group Begbies Traynor (BEG) has announced results for its year ended 30th April 2016 and that, although cautious, “the recent acquisition of the Pugh auction business, together with the Taylors valuation business, gives the opportunity for growth in earnings in the new financial year”.
There are so many Red Flags surrounding ShareProphets AIM-China Filthy Forty Aquatic Foods (AFG) that it is hard to know quite where to start. One could consider the discount to cash, to profits, to assets and wonder why there have been no buy-backs announced just for starters, but there are plenty more to be found HERE. So why have the shares been roofing it?
ShareProphets AIM-China Filthy Forty play China New Energy (CNEL) has seen us hoist the Red Flag on several occasions before (see HERE) but its FT15 results, released on deadline day (Thursday) take the biscuit. The company is, quite simply, a disgrace and its advisers (Nomad Cairn and disgraced Broker Daniel Stewart) should be ashamed.
AIM Dog with fleas Rosslyn Data (RDT) has announced a wholesale reshuffle of its boardroom which saddens me greatly as it now means that there is one less AIM CEO who had a career in porn. Farewell Charles Clark for you will be missed.
Hats off to veteran journalist Tim Blackstone who called Circassia (CIR) as a short with a £900 million market cap on January 16 this year HERE. Today the shares have crashed by 64% to 98.5p giving it a market cap of just £261 million. Tim Blackstone dared to go up against Neil Woodford with this call as he is the largest shareholder. It looks like another biotech disaster for Woodie.
I start with a few personal issues and then in this bearcast I explain why the mountain list of red flags at cancer play Advanced Oncotherapy (AVO) matter but what will be the killer blow and when I shall deliver it.
On 25 March 2015 Advanced Oncotherapy (AVO) announced what it claimed was a major breakthrough in China, what it termed the "first major sale of a LIGHT system" in China. Well that was the headline. The customer was a firm called Sinophi. The shares zoomed on this $40 million order. Jolly good news. 37 days later the company raised £20 million in a placing at 8p. But did anyone care to look underneath the PR spin? No. Lets start with Sinophi Healthcare Limited.
I start with a discussion on how the sad events in Yorkshire may sway the Brexit vote before turning to Gary Newman's nonsense earlier today about Brexit, house prices and Foxtons (FOXT). Then it is onto a detailed look at Strat Aero (AERO) and also Regent Pacific, the new owner of Plethora (PLE) and in both cases its red flags ahoy big time.
Many years ago, in order to close a short position in Leeds United after it had gone bust, I bought stock for a nominal sum off Leeds City Council, and remember thinking it a little strange that it had invested tax payers hard earned cash in such a dodgy enterprise.
We have been on the case of bargepole stock Fusionex (FXI) since the world's greatest tech analyst Kevin Ashton flagged it up as a sell at UK Investor 2015. The bear case grew with Zak Mir giving it the kiss of death with not one but two buy tips but it was the trading statement last Autumn that really woke folks up to the genius of Ashton as an analyst and of Mir as a counter-indicator. Today we have interims. Natch, the shares are down - at 158p - but the stance remains a stand out sell.
I realise that over on the LSE Asylum criticising Highland Natural Resources (HNR) gets the sort of reaction normally reserved for those who suggest that the McCann's are not complete role models when it comes to best practice in babysitting, but a transaction announced back in 2015 looks very odd indeed to me. Any more red flags vicar?
Both Tom and I have been critical of Boxhill Technologies in this year and the full series of articles can be seen HERE, so I felt it was appropriate to applaud a few baby steps in the right direction set out in Friday’s announcement “Corporate Update and Board Changes”.
A Thursday 2:21pm “Trading Update”. Hmmm. “Mobile Streams plc (MOS) updates the market on its expectations for the current financial year ending 30 June 2016”. Uh oh…
Hmmm, a Chinese company domiciled in the Cayman Islands lists on the Casino and less than sixteen months on there appears to be a bit of a procession going on, with two directors walking the plank with immediate effect in consecutive days. Sound familiar?
As if poor shareholders in Lenigas Cuba (CUBA) did not have enough reasons to be miserable now they must cope with news that Richard "Gollum" Gill has published a buy note on the stock.
The ShareProphets AIM-China Filthy Forty is today officially reduced to just 20 companies remaining listed on the Casino (Auhua, ACE, being the latest dispatch following a Nomad resignation and no replacement being found). But is it a problem specific to the Casino? It seems not, according to an interesting post by Steve Dickinson in China Law Blog (see HERE), but there are some simple tests which can be applied – take note AIM Nomads – which gives a very good indication of whether you are looking at a fraud or not.
Tom Winnifrith has already raised enough Red Flags with regard to AIM-listed Servision (SEV) to have one reaching for the longest bargepole in the boathouse. But looking through its Companies House filings it would appear that all is not well in the administrative department.
With the interims of the leading e-sports business, Gfinity (GFIN), due by the end of the month, I thought I would put my investment analysis to the test and try my hand at an interims preview rather than the more traditional review which can often skewed by hindsight.
ShareProphets AIM-China Filthy Forty play Aquatic Foods (AFG) released a trading statement yesterday for its full year to Dec 2015. I commented that the last trading statement had more holes than a fish-net and yesterday’s serving of fishiness lowers none of the Red Flags previously raised.
It is hard to keep up. We called Auhua “Clean is my middle name” Energy (ACE) as the 21st AIM delisting/suspension on the ShareProphets AIM-China Filthy Forty as its Nomad steps down effective first thing on Monday, but at no-one-is-watching o’clock last night up popped Asia Ceramics (ACHP) to say that its Nomad had resigned. So Auhua will have to settle for 22nd place.
Following on from yesterday's piece on ShareProphets AIM-China Filthy Forty play Aquatic Foods Group (AFG) we see that the shares are still sliding. Drip, drip, drip - the Chinese water torture continues.
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.
Aquatic Foods (AFG) has been on the AIM Casino for exactly one year but its shares have slumped from 70p to 15p bid. The FD walked the plank today and surely Nomad SP Angel which raised £9.3 million for this POS 12 months ago must realise that the end is nigh. In this podcast I look at the numerous red flags. This one is going down.
I indicated in part 1 of my results analysis that there were a few bits and bobs in the Tern (TERN) Annual Report which had not made in into the RNS version of the FY15 results. Often it pays, when studying a company’s numbers, to begin with the notes to the accounts and then work backwards from there. And so here are a few things which caught my eye.