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Stuttard’s Septic Seven – September update: minus 75%, what about replacements?

By Nigel Somerville, the Deputy Sheriff of AIM | Sunday 10 September 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.

Well here we are a few weeks short of the anniversary of the creation of out Septic Seven stocks which we had Red Flagged but were at the time still trading on AIM. Marcus Stuttard, the sham sheriff and head of AIM, obviously had complete faith in the regulatory setup of the Casino which is why this portfolio was set up. After all, if he is completely happy with the regulation of AIM (for which he is responsible), he should be happy to pony up his cash in out basket of diversified stocks. We might consider all members of the portfolio as littered with Red Flags, but obviously he doesn’t and therefore some of the joke PEs are highly attractive.

The only problem is that out of the original seven (and two more attractive companies had to be omitted because they were suspended – and since then delisted) only two remain tradable. Ouch.

One is suspended pending accounts (Aquatic Foods, AFG) and its Nomad (SP Angel) has three times signed off on an RNS claiming the accounts are coming next month. One has to fancy a sorry end to that tale sooner rather than later, since we were told that S P Angel is still owed money.

Another is delisted from AIM but got a listing on NEX (the new name for ISDX). Except it is suspended there too. Step forward African Potash (AFPO), which lost its Nomad (Cairn) and then managed to lose its NEX adviser Peterhouse. One wonders how long Alexander David Securities will last – especially since it didn’t put its name to the RNS of 8 September. Given that it had only been in the post less than two months you have to wonder.

Three further delistings saw Cloudag (CTAG) – Nomad resignation, Jiasen (JSI) – shareholder vote, and Taihua (TAIH) – also a shareholder vote, all removed.

So that leaves two: China New Energy (CNEL) and Eden Research (EDEN) which are still trading. Or at least they were last time I looked, although questions remain with both of them. And both of them have fallen – one by 23% since the start of the index.

And so to the scores on the doors. This is a bit hard, but strictly speaking I sense that the suspensions of African Potash and Aquatic Foods should count as a zero. That gives us this result:


  start (mid) now (mid) Change %
AFG - suspended pending accounts 12.5 0 -100.0
AFPO- delisted, now susp NEX 0.185 0 -100.0
CNEL 1.525 1.175 -23.0
CTAG - delisted 18 0 -100.0
EDEN 11.5 11.125 -3.3
JSI - delisted 3 0 -100.0
TAIH - delisted 2.75 0 -100.0
    Average % -75.2


Oh dear, Mr Stuttard, that’s not very good is it?!  Yet all seven firms were clearly passed fit and healthy a year ago.

With one final update on the closure of the year, I am starting to turn my attentions to potential replacements. After all, this is supposed to be a Septic Seven and not a terrible two.

With the LSE’s recent pronouncement that it has no power to prevent fraud and other things taking place on its world’s most successful growth market yet it is perfectly happy to take the listing fees from those outfits I think the portfolio should continue.

And since Marcus Stuttard, the Head of AIM, draws a nice fat salary from those fees I think the least he should do is invest in the portfolio. It makes sense, unless of course he is another morally bankrupt chocolate teapot lacking in the moral fibre to do his job properly. And we know that’s not the case. Don’t we?

So suggestions are welcome in the comments section for new entrants. First on the new list will be Telit (TCM) but I need to find at least three more.

One final thing, why is it that a music teacher can (deliberately) have such a fantastic hit rate of failure when AIM Regulation are there on full time salaries?

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