Telit - Smelly Cat, smelly Cat - its not your fault: talk me through the share dumping timeline again

By Tom Winnifrith, The Sheriff of AIM | Monday 7 August 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.

I have just posted my analysis of today's disastrous interims from Telit Communications (TCM). This company is just drowning in red flags and the shares have crashed from 340p on May 25 when CEO Oozi Cats flogged £24 million worth to 156p. I could see this being a zero as explained in full HERE. But perhaps Oozi can help me on a few timeline issues just to explain why he is not an insider dealer. In return I have a special musical video just for him below...

On April 25 2017 Telit stated:

London, 25 April 2017 - Telit Communications PLC ("Telit, "the Group", AIM: TCM), a global enabler of the Internet of Things (IoT), is today publishing a trading update for the period 1 January 2017 to 25 April 2017. The Group has traded in line with the Board's expectations and remains on course to meet its expectations for double-digit revenue growth in the current financial year.

Ends.

On May 5 the company raised a net $49.7 million, placing shares with dumbfuck institutions, who knew far better than silly old bears like me, at 340p.

On May 24 Telit announced that it had been notified that: Boost B.V. and Mariselia Ltd, entities controlled by Oozi Cats, Chief Executive Officer of the Company, have sold in aggregate 7,081,620 ordinary shares in the Company at a price of 340 pence per share (the "Sale") - that is a neat 24 million quid for Oozi. Its cool for cats.

And today we have half year numbers showing sales growth of just under 7% with a warning that Full Year sales growth will be lower than forecast, margin contraction a swing from reported profit to loss and a massive cashburn none of which was forecast.

At what point did Oozi know that H1 numbers would be a dogs dinner and thus that Telit had not got a cat in hell's chance ( an idiom that Oozi may want to consider further) of hitting FY forecasts? Clearly he was unaware at April 25. He must have been unaware at May 5 otherwise he would have had to warn placees.

In order not to be guilty of market abuse and insider trading he must have been unaware at May 24 - 80% into the period. That suggests to me that Telit's internal reporting systems are really utterly mickey mouse for its enormous trading issues to have snuck up on Oozi and is fellow directors so late in the day.

Either way, this is now a total bargepole stock.

Follow @ShareProphets

Filed under:

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.