By Nigel Somerville, the Deputy Sheriff of AIM | Monday 1 August 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.
AIM-listed Servision (SEV) has announced the appointement of a new NED. If that is supposed to reassure in the face of Tom Winnifrith's complaint to the FRC over the "interesting" accounting going on at the company then the CV of new appointment Mr Anthony Legge is just jaw-dropping.
We are told that Mr Legge has a good understanding of the challenges facing overseas businesses whose shares are quoted in London so where, pray tell, does this understanding come from?
We are also told that he is a former Nomad and AIM Qualified Exec. The list of former employers includes the likes of Dowgate Capital and (following a takeover) Astaire Securities. But then we see that he spent 2010 to 2014 as a QE at the fine firm of Daniel Stewart. Oh dear.
Daniel Stewart was, of course, responsible for bringing the likes ShareProphets AIM-China Filthy Forty fraud Naibu (NBU) to the Casino. That company had about £40 million in net cash, was growing, was cash-generative and profitable. Oh, and a CEO languishing in a Chinese jail.
And undeclared debts coming out of it ears.
And a CEO taking a dividend in scrip whilst at the same time trying to offload half of his shares onto the market.
And when the cash raised from the IPO was all gone, the dividends just stopped.
I trust that Servision will put Mr Legge's good understanding of the challenges facing overseas businesses whose shares are quoted in London to good use.
Perhaps for its next appointment, Servision might wish to consider calling upon the services of Rob Terry who, I am sure, has a good understanding of the challenges facing companies with, ahem, accounting policies being evaluated by the FRC.
We can live in hope.
Meanwhile, Servision's Nomad (Allenby) may wish to note that it was Daniel Stewart & Company plc, not limited, where Mr Legge served as a QE.
At 1.5p to sell, shares in this POS remain overvalued by c100%.
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