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Versarien – I told y’all

By Tom Winnifrith | Monday 24 September 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.

Versarien (VRS) is the reason why everyone should sign up with Primary Bid right now. Most Primary Bid offers are ones that I have no hesitation in telling you to avoid like the plague, being trapped in a lift with Emmanuel Macron or both. But just occasionally one comes along that is really worth punting on. I told you on Friday that Versarien was almost certainly in that category HERE. Today I am vindicated.

I should note that while we earn a tiny commission on any funds raised by anyone registering with Primary Bid via ourselves we still tell you to avoid nearly all its issues.

The company sought to raise at least £2.9 million at 145p, allowing itself to take more if it was offered. Boy was that the case. It raised £5.2 million with the issue massively oversubscribed in a very short space of time.

As I noted on Friday, a good portion of that was – I suspect – bears closing but the “believers” were also piling in too. Some of those bears who did not manage to get a piece of the pie have, I suspect, been scrambling to buy to close this morning and thus the shares are up 8.5p at 182p-185p. Those who bought to flip as I suggested can thus do so very easily and so make a quick shabby turn.

Would I hang on for more? Sorry but no. The market cap is now a stonking £279.3 million which for a company that last year made a loss on sales of just £9 million is bonkers. Shorting a stock with such momentum and such a devoted band of “believers” is high risk as many bears, including Lucian Miers, have found to their cost.

But the valuation and the lack of institutions on the shareholder list are very worrying to me. This is not one you can buy and then sleep soundly holding.

If you missed out on this opportunity to be a spiv of a share flipper there will be others via Primary Bid.  Most of its issues are tuch but there is the odd golden opportunity. To make sure you do not miss out on that register HERE.

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