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Spooooooooooooooooooooof! Old Jim Mellon tries it on with Condor share purchase

By Tom Winnifrith | Wednesday 6 December 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.

My old friend Jim Mellon claims to be worth £800 million although I rather doubt that (by a long chalk). But he is certainly worth a bob or two and that brings us to news today that he has bought 50,000 shares in Condor Gold (CNR) at 39.5p. I say Spoooooooooooooooooooooooooooof - placing ahoy!

There are a few points to note:

a) Spending £20,000 for Mellon is like you and I spending £5, it is peanujts to him. If he really believed he's be filling his boots so that makes this a spoof. Mellon who is a NED at Condor now owsn 3.16933 million shares so this trade is so trivial you ask why bother?

b) Why buy now when the company is clearly out of cash and needs a placing big time to keep the lights on? Just let the shares sink without the ramp and buy even more cheaply in the placing which is needed ASAP. At June 30 Condor had cash of £3.168 million but H1 cashburn was £3.43 million split equally between (bloated) PLC costs and drilling. Drilling has continued into H2 so do the maths! Condor now has no cash at all and has just got a dual listing in Canada. Guess what happens next?

c) Mellon has form with spoofing the shares higher ahead of a placing at Condor with trivial share purchases. On 13/1/17 he bought shares at 48.5p and 50.5p - that suckered in the morons and so on 20 February there was a placing at 62p
On 26/01/16Jim bought a few shares at 27p. Again the morons were suckered in and on 4 April there was a placing at 40p.

Condor is 39p-41p and with cash at ZERO and a placing needed ASAP the stance is SELL!

PS. A top mining analyst points out that such disclosures should under the rules be made within 5 days, why did Condor wait 15? I guess rules are for little people.

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