By Tom Winnifrith | Wednesday 14 June 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.
Shares in Fusionex (FXI) the tech play from the Norfolk province of Malaysia still trade at 45.5p valuing the company at c£20 million. This has to be the biggest slam dunk short in London because at 10 AM tomorrow...
The company has an EGM at the Main Conference Room, Level 12, Tower A, Plaza 33, No.1, Jalan Kemajuan, Section 13, 46200 Petaling Jaya, Selangor, Malaysia. One assumes that voter turnout will be low and thus it is a slam dunk cert that the meeting will vote to delist this company from AIM. That delisting will take place after, at least, five clear business days have passed so some time between Thursday 22nd after hours and Monday 26th June.
The shares will then trade on a matched bargain basis but they will not trade as there will be no buyers for this company which regularly reported profits but was always guzzling (other folks) cash. Since its IPO £55 million has flowed from mug UK punters to Malaysia either for the company to, ahem "invest" or for share sales by Malays. The joint broker and PR have already quit as they try to distance themselves from this Norfolk. It is just possible that the Nomad will walk post GM so bringing a suspension ahead of delisting. Who knows?
The bottom line is that folks have very limited time to bail and save what they can as these shares are worthless and will soon be untradeable.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |