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By HotStockRockets | Monday 2 May 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.
First up, just a note that Obtala Resources (OBT) has confirmed that it has received the cash for selling a small part of its forestry portfolio. That is to say $900,000 is now in the kitty,a third of it two months ahead of schedule. That an AIM Company has to announce that money has arrived as per contract tells us everything you need to know about the state of AIM. Anyhow it is good news.
Yesterday Tom Winnifrith met the new chairman Miles Pelham for breakfast in a greasy spoon. Tom paid for the coffees - we declare all interests here!. Tom notes:
Pelham has an amazing CV as a fund manager out East. How that translates into managing an AIM listed company is uncertain but he is certainly credible although he seems jolly young - 35 odd. He is also well connected and that may well bring new investors and a better class of advisor on board. It is positive.
Whereas Obtala of old looked cheap, the company was unable to articulate this. Woolly talk of NAV just did not wash.And some of the acquisitions, notably the shops, really do not seem to add value. Pelham accepts this and I would expect that one or two small non core assets will go.
Perhaps more importantly Pelham accepts that punters want visibility of earnings and revenue streams. They want to be able to say EPS and DPS this year will be and for cash to be managed such that there just will not be any more placings just to keep the PLC lights on rather than to grow the business.
Pelham has a reputation to lose and is talking all the right talk. If he delivers - and on balance I think he will - it will be very good news for the rest of us. You can judge for yourself as he is presenting tomorrow at www.UKinvestorshow.com
The stance remains buy.
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