Hot share tips and all the big AIM exposes from the City's most-connected reporters
By Tom Winnifrith | Tuesday 12 April 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am lambasted by a chap, who pretty obviously owns shares in 88 Energy (88E), who attacks my piece of yesterday using play number 6 from the mad bull responding to hard analysis playbook - "this is not news, it is all old hat, not worth reading, yadda, yadda, yadda". Well...ahem.
The company has made it abundantly clear that there will be a fund raising and has even provided a likely timeline. It is not one of those companies that denies this sort of thing.
So, I'm afraid your headline is not news, nor is it sensational news it's already out there in the public domain. Catch-up at the back, please!
Where in official RNS statements is this flagged up? I have been looking at the recent ones and it is not. The presentation publised yesterday talks about funding for icewine #1 in H2 2016 via a farm in or strategic investment but there is no mention of the PLC issuing equity.
The information that a placing is on its way may be known to some but given the flurry of ramptastic announcements, none mentioning an equity placing, it is a safe bet that most folks buying in the secondary market are doing so unaware that a discounted placing is a slam dunk cert and imminent. A very much H1 event.
That placing will be at a discount to the market price - now down to 2.3p -2.5p - and, as such, if investors know there is a placing on the way they will not buy but sell to buy back in that placing later on. What no-one knows is what the placing will be priced at? That will be determined by how far the shares slide ahead of the placing.
Another poster notes that the management is flying in from the colonies to ramp at at an investor conference on 14 April. That my friends is a sure sign that the placing is imminent. keep selling ahead of it!
PS. The website of 88 Energy is misleading and uber ramptastic. I note that it presents Proactive Investor commentary there as news. It does not flag up that PI is paid a fee by 88 to write articles. That, in my view, makes it a tad less than impartial. There should be such a disclaimer.
Perhaps for balance it might like to run our articles as it has put up links to other press comment, only the bullish pieces natch. Somehow I suspect that our ramping pals from the colonies will not be doing that.
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