By Cynical Bear | Tuesday 12 July 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.
With the Euros coming to a close, it’s appropriate to assess the performance of the Sub-Standard Shockers XI over the last month or so. Well, you know it hasn’t gone well when the best performers are those that have been in suspension for the period.
In summary, none of the squad of 16 has performed well, think Gary Cahill and you will get the picture. For brevity, I will only comment where there has been significant change since the team came together so let’s have a look at how they did.
Incredibly, we may soon need to pass the captain’s armband on to a different player as time could be finally running out for the old head in the team, Worthington (WRN). There has been much commentary on this site, most recently HERE on recent developments relating to the bankruptcy of its potential acquirer but suffice to say that it’s days could finally be numbered (although it has a pretty impressive record of hanging on in suspension like one of Damian Hirst’s dead sheep).
The defence has been predictably week with Challenger Acquisitions (CHAL) drifting downwards (closing at 20.375p compared to 24p previously) and the debt bomb is ticking as I mentioned HERE. Its partner in defence, Falcon Acquisitions (FAL), is yet to make its move and has been an inert investment company for six months now and, unsurprisingly, its share price is also down about 20% since the team came together.
Some movement in midfield, although not for Silver Falcon (SILF) which has now been in suspension for close to seven months; however, Senterra Energy (SEN) has recently gone into suspension pending a potential RTO of a SIM technology business. It is saying something when a business moving into suspension is seen as one of the best stories in the team.
The big stories lie though with the supposed star strikers.
Highlands Natural Resources (HNR), at 60p when the team was selected is now down to a third of that value at around the 20p mark having had some well-documented issues (HERE) around the disposal and exercise of warranties and questions about its Helium asset. The latter also involved one of the team’s substitutes, Opera Investments (OPRA), which originally agreed to do a sacrificial deal relating to these assets that made no sense (HERE) although has just pulled out of the deal which is good news. However, it still has to do a deal and the share price has come off in any event as investors lose patience – down to 6.25p from 7.375p.
Its fellow striker, Bluebird Merchant Ventures (BMV) has also had a difficult time, with doubts being raised over the viability of its Batangas gold project in the Philippines. The share price has come off from 3.75p to 2.625p.
All in all it’s an abysmal performance. In fact, I would go so far to say that it is a worse performance than England’s second half against Iceland and that is saying something.
What I fine even more maddening is the constant refrain of the Bulletin Board aficionados when doubts are raised about any of these companies: “BUT IT’S NOT ON AIM!”
Correct, it’s not. In my view, it’s worse, in part because of the ignorance of the average private investor of the shortcomings of the Standard Listing.
The UKLA should act.….but will it?
Never miss a story.
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