By Nigel Somerville, the Deputy Sheriff of AIM | Sunday 14 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.
Marcus Stuttard, head of AIM and the oxymorons of AIM Regulation, had a specially selected and beautifully diversified portfolio of AIM stocks chosen by ShareProphets back at the end of last September so that he could demonstrate his faith in the regulatory set-up of the market he runs. Naturally, there was nothing at all wrong with any of the companies picked: they were all trading on the Casino as normal, so we were just plain wrong to be Red Flagging them all for one reason or another. We were just so, so wrong that……
Er…oh dear: another AIM departure – this time Filthy Forty play Taihua 'where’s the website gone now?' plc, following a delisting EGM – means that of the original 7 stocks picked at the end of last September, only three remain on the world’s most successful growth market.
So now we have seen African Potash (AFPO, Nomad resignation) and CloudTag (CTAG, Nomad resignation) depart under something of a cloud of suspicion, and fellow Filthy Forty plays Jiasen (JSI) and now Taihua (TAIH) have gone for the voluntary exit route (and there is another Filthy Forty delisting EGM pending….anyone see a pattern there?)
Of the four to have gone, only African Potash (AFPO) found its way on to another market (although Jiasen was half promising that too), in the form of the NEX Lobster Pot where it was suspended from trading last month pending some cockamamie transaction being organised by those very fine chaps at Peterhouse Corporate Finance which Tom Winnifrith found to be a tad too much on the whiffy side.
Taihua was a particularly squeaky-clean inclusion in Mr Stuttard's portfolio: an open offer conducted to fund a share buy-back, the chairman dumping his entire holding in the buy-back (held months and months later), the delisting proposal just six weeks later, the incredible disappearing now-you-see-it-now-you-don’t website (which has now vanished once again), the qualified-audit 2015 accounts in relation to outstanding related party receivables…..and the company suggested that the reason for leaving AIM was that no-one was interested in its shares. No shit, Sherlock.
As can be seen from the performance table (with African Potash suspended on NEX we have taken the last published trade price of 0.015p), the overall loss is now 61.7% - pretty impressive stuff (for all the wrong reasons) in the space of less than eight months.
And so just three stocks remain: Filthy Forty Aquatic Foods Group (AFG), Eden Research (EDEN) from the Pump province of Panama – the Septic Seven’s top performer, on a loss of only 3.3% - and finally that squeaky-clean paragon of corporate governance virtue with a string of potential deals dependent on its supposedly “independent” NED’s private entities, Filthy Forty China New Energy (CNEL).
What could possibly go wrong (that hasn’t already)?
Let’s see: less than eight months down, four out. At this rate all seven will be gone before the Septic Seven celebrates its first birthday.
But the regulation of the world’s most successful growth market is just fine.
Isn’t it, Mr Stuttard?
|start (mid)||now (mid)||Change %|
|AFPO- delisted, now susp NEX||0.185||0.015||-91.9|
|CTAG - delisted||18||0||-100.0|
|JSI - delisted||3||0||-100.0|
|TAIH - delisted||2.75||0||-100.0|
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