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By Nigel Somerville | Friday 20 April 2018
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.
Standard-listed AIQ, (AIQ) having shaken off my questions, corrected the record over its directors’ other directorships and supposedly dealt with the lack of stock available which sent the shares sky-high when it first listed has finally got its shares unsuspended as of yesterday. But once again the shares are trading at an absurd level for a cash-shell with perhaps, at absolute best, around 10p a share of cash: at time of writing, and no investments, the spread is 100p – 130p!
The suspension price was 115p, when the shares were suspended because none of the IPO stock had cleared into Crest and consequently there was a false market with a massive stack of unsettle trades.
With the shares now back at the suspension price (and surely massively overvalued) I wonder whether the reason is once again because of a shortage of stock in the system. Is there once again a huge queue of unsettled trades building up?
And if that is the case, how long will it be before AIQ is, for the second time, suspended from trading?
Noting that Tom Winnifrith has sold his little windfall of stock, he may be ruing acting so quickly for he could have more than doubled his money if he had held on. But cash in the bank is cash in the bank.
It may just be that there has been massive demand which has pushed the shares up. But given that the company has itself warned that the shares were trading at ludicrous levels it is hard to see how UK-based shareholders would have been the source of the demand. Of course, some potential possible shareholders from overseas may not have enough English to read the RNSs properly.
So where is the demand coming from?
If you own the stock, the advice surely has to be sell. But I wouldn’t short this one (even if you can) because this madness could continue and even get worse.
As an advert for the Standard List, the UKLA and the LSE should be ashamed of themselves. Is it not crystal clear that something is not right?
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