By Nigel Somerville | Wednesday 28 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.
Grand Group never made the ShareProphets AIM-China Filthy Forty. It was nothing to do with qualifying, it just arrived on the Casino too late. But listing in January 2015 at 80p to give it a market capitalisation of £27 million it is now worth just £4.8 million. Ouch!
It had two businesses which eventually disappeared off the radar after last years audits proved a little hard to come by and they were disposed of. Today’s numbers suggest that the spoils of last year’s disposals are coming in on time and we are told that as at the end of April the company’s coffers had swollen to £25 million, with no other assets.
Er…hang on! £4.8 million for £25 million of assets? Like I said, truly worthy of a Filthy Forty place!
Last year it lost two directors and told us that it was actively seeking a new NED….and that was the last we heard of that.
Now, with no business invested into, it is an AIM Rule 15 cash shell with a time limit to suspension of 30 September to do a deal or face suspension from the Casino. What’s not to like!
And as if you needed any further incentive to invest, the company’s shares were suspended for almost half of last year.
So what of the results? I suppose there is little to report given that the company was a cash collection machine and we are told the cash was paid up as expected, with a bit more to come. And so that means that you can buy 5 times your cash by buying a share as at the end of April, with more to come.
So is it a buy?
What do you think?
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