By Nigel Somerville, the Deputy Sheriff of AIM | Monday 10 July 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.
AIM-listed Chinese play Grand Group (GIPO) has had something of a chequered history even by the standards set by the Filthy Forty. It didn’t get in because it listed too late, but that hasn’t stopped the comparisons. It listed at 80p in January 2015 yet there appears to be a rush for the exit today, with the stock off by 32% at just 9.75p.
We have had no news and the finals for 2016 were positive enough: assets disposed of for £25 million so a clean start, apart from the small matter of doing a transaction by 30 September before being suspended.
But the shares are off by 32% today on no news. That puts the cash shell company on market capitalisation of £3.3 million - a whopping discount to the cash position of some 87%!
So what gives? Is GIPO a fraud unravelling, or is there another explanation?
What we need here is a statement, and pronto.
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