By Tom Winnifrith, The Sheriff of AIM | Thursday 15 December 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.
Shares in drowning in debt Avanti Communications slumped again on Wednesday to a new record low of 18p - the market cap is now just £27.6 million and death is imminent. As I pointed out at the weekend, its shares could be suspended on December 30th but its real worry is insolvency - it will be out of cash by January and it looks impossible to refinance. The cry is Timber! This once mighty AIM play is falling and will soon be lying as a rotting corpse on the forest floor. Where has all the money gone?
A good old whack went to Edison, the research prostitutes, to promote the stock. How much Avanti cash has been spunked on this firm, the employer of cop mugger, the convicted felon Champagne Charlie Gibson? It was Edison which, brought us this toe curlingly bad blow job of an interview with Avanti's bombastic CEO David Williams on May 31.
Edison calls that journalism but where is the bold and upfront disclaimer "we were paid money by Avanti to allow Williams to talk such utter cock"? This is not journalism it is prostitution. Edison is paid not to report on fact or to investigate but to help its client to persuade mug punters to buy shares that are grotesquely overvalued. Shame on those involved in such a trade. You are investment whores.
But Edison's sins are worse still. Consider this research note HERE from February 4 2016: Buy at 138p, fair value 427p. The shares are now 18p. 18 fucking pence. Analyst Andy Chambers did you put your cash into Avanti on the back of your note given how "cheap" the shares were? Of course not.
Is this the worst City research note published in 2016? It has got to be a strong contender has it not?
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