By Tom Winnifrith, The Sheriff of AIM | Wednesday 15 February 2017
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.
Over on the LSE Asylum and elsewhere in Bulletin Board Moron land there is some excitement that Hargreaves Lansdown appears to speak for a large number of shares in the AIM fraud that is Cloudtag (CTAG). The dreamers reckon this is good news as the post below shows. Au contraire mes amis...
One Moron on the LSE posts ( hat tips to Phil S & David T for nominating this in the current week's BBM contest) :
"Hargreaves Lansdown Nomin- has a sizable interest in here, there is a whole bunch of market researches and boffins working directly for and on behalf of H&L , it's unlikely they just got in here on a whim, they can and do get it wrong, just like the others, but they would know if this was all one big blagg, Lets bide our time here., HL dont buy into rubbish holding 99,496,504= 24.37% share"
Hargreaves Landsown does employ analysts who look generally at funds and suggest to their clients which ones to own. But those analysts do not look at crap little companies on AIM. Indeed they dont tend to look at AIM companies at all.
However Hargreaves does have a vast number of punter clients who use it for its execution only services. The holdings of these clients are aggregrated to say HL Nominees own xx% of a company.
Those individuals who own a given stock do so not because of any advice given by Hargreaves but becuase of their own analysis or more usually lack of analysis. Because Hargreaves offers a reasonably cheap dealing service and also spends a good whack on marketing it has stacks of mug punter clients.
As such when HL is shown up as having a big interest in a shitty AIM share what that tells you is that this is a stock where mug punters dominate. And that brings us to the fraud Cloudtag. There are no institutional holders here. The board and promoters like dodgy Andrew Regan own sod all shares. Death spiral provider L1 owns sod all shares.
All the switched on folks have sold palming their stock off on the sort of small fry chav punters who use Hargreaves. A big Hargreaves holding tells you this.
No product, no revenues, massive cashburn, dodgy death spiral funding, well dodgy promoters out, a track record of lying to investors and a shareholder base of complete morons: what could possibly go wrong?
Keep selling - target price 0p
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