By Tom Winnifrith | Tuesday 9 May 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.
He gets much wrong, but I take my hat off to the old bank robber as he has got Andalas Energy (ADL) shares suspended today by revealing that it was trying to get away a bailout placing at 0.05p-0.06p. Dan has compared Andalas to " a crock of shit" but his assessment is unfair. Unfair on a crock of shit that is.
Anyone who wants to invest in a company that needs £550,000 to repay a loan (which saw it get only £400,000 the rest is fees) by July 28, which has no cash, which is a cash guzzler and is nowhere near having any assets of value and which is run by a proven rule breaker should call John Bellis at Beaufort.
With the shares suspended at 0.08p there is no chance for the flippers to play this one with forward selling so why should anyone pay 0.05p for shares which are essentially worthless?
At 0.08p the market cap is £1.9 million so the EV is £2.45 million but this company is a worthless entity. There is no fundamental investment case. Like Dan we have warned you repeatedly about this one. But perhaps you ignored us and so are now sharing a cardboard box with Justin the Clown who bet the ranch on this stock at 1p +.
Andalas today stated that it:
"notes the recent media speculation regarding the Company undertaking a significantly discounted equity fundraising in the short term. Andalas confirms that it is currently in discussions with investors concerning a potential fundraising to fund its ongoing activities in Indonesia. The discussions are of a preliminary nature and the Company cannot guarantee that any such fundraising will take place in the short term. Pending the outcome of these discussions, the Company has requested a suspension in trading of its shares on the AIM Market. A further announcement will be made in due course as and when appropriate."
Even at this stage Andalas cannot tell the truth. It needs cash to a) pay bloated PLC costs, b) repay that loan. If it manages that then it could do with a few bob for its totally dull pipe-dreams in Indonesia.
It goes without saying that this is a placing to avoid at all costs.
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