Statistics released for the month of September by the London Stock Exchange show that AIM is still contracting. When I wrote about this last month, AIM was already at its lowest ebb since 2004 and the latest numbers suggest that the decline is still ongoing.
Notifications of major holdings in the shares of a company are designed to keep investors informed of when large shareholders increase or decrease their position by a significant amount.
AIM-listed Frontera (FRR) has managed to get around to updating the market on its Ud-2 well in Georgia. To be fair, it did promise news by the end of the month. On the other hand, there are no flow rates. Had they been good, you can bet the numbers would have been there this morning.
Two positive-looking RNSs, one each on 9 Feb and 16 Feb saw shares in AIM-listed ValiRx (VAL) shifting about sharply. On 9 Feb the shares shot up from a previous close of 15p and peaking at 18.25p before topping out at 21p the following day. Then Tuesday's news saw the shares close down at 13.25. And lo and behold yesterday we had a keep-the-lights on placing to raise £0.5 million at just 12p a share.
When I heard that CEB Resources (CEB) CEO Dave Whitby was coming to the UK for a meet and greet with investors I thought, “here we go”. As much as I like the story and can see the opportunity in the Indonesian gas market, Whitby’s visit looked like a par for the course placement run. So confident was I that this was just another foreign executive coming over to tap into the seemingly inexhaustible British desire for resource-based pipe dreams, I bet cynically bet Doc Holiday a fiver that the company would place within a month of Whitby leaving. I was wrong. Serve me right for taking on the market mechanics maestro.
Shares in Orsu Metals (OSU) have jumped over 200% in the last 24 hours on word that there is another short squeeze in the market. The facts are now this. A regulated market maker has failed to deliver stock to a private investor, this is now public knowledge, 30 times average daily volume has poured into Orsu today (up from 15 times yesterday) and yet still this share continues to trade. This is yet again highlighting once more the structural faults running through AIM.
I am currently in touch with an investor who has been extremely successful in the resource market on AIM over the years. The primary purpose of our discussions has been to talk about market maker practices (much more on this to follow), but a throwaway comment he made, caught my attention. I asked if he would mind if I shared this on our site, as it struck me as a useful and easy to use trading tip. He said it was fine and his little insight could be yet another pointer to the long awaited turnaround in resource stocks.