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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.
Nigel Somerville says that he is hanging on for much more and his patience may be rewarded. Thirsty Paul Scott speaks to Sosandar (SOS) bosses regularly then updates his fellow morons on the ADVFN Bulletin Board. “Nudge, nudge, wink, wink, I speak to management regularly and it will all be brilliant” says Thirsty Paul. Whatever…
I rate the management very highly and think that the shares may well be a cracking investment for the long term. But at c38p the market cap is £40.5 million. When I bought the shares – and tipped them – at 15p the market cap was c£16 million with cash of more than £7 million so you were paying £8-9 million for the business. Today cash is c£4 million (if that) so you are paying £36-£37 million for the same business, albeit eight months down the track.
Last year to March 31 sales were £1.3 million. This year they will be, perhaps , £4.5 million. So anyone buying the shares today is paying just over 30 times historic sales and nine times current year sales. That is sales not profits for this business is loss making now and will lose money this year.
As a longer term investor, I may revisit this one if I could buy in the mid twenties now or in the low thirties in a year or two’s time. But pro tem, having top sliced a fortnight or so ago, I've sold the rest now. The cash is on its way home to Daddy and will, after Capital Gains tax, pay for an Infinity Pool at the Greek Hovel to be ready by next April.
You only live once and which would you rather have: an infinity pool at your Greek eco-palace or some overvalued share certs being ramped in a rather tedious fashion by the UK’s thirstiest share blogger?
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