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BREAKING: From Death to a Standard Listing, Daniel Stewart the comeback...

By Tom Winnifrith, The Sheriff of AIM | Sunday 10 February 2019


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.


More than a week after we exposed the coming death of Daniel Stewart & Company the weekend press has finally woken up and is reporting how it went into administration on Thursday. But something bigger happened on Thursday. Daniel Stewart, c/o former boss Adam Wilson is coming back to the market via a standard listing. Let me explain with the documents below.

Daniel Stewart Securies is a nothing company that owned 10% of Daniel Stewart & Company and was essentially the private office of DS boss Peter Shea. On Thursday it launched an all share offer for Altantic Carbon issuing so m any (utterly worthless) shares that it will own 10% of the enlarged equity. 

Atlantic Carbon is run by Adam Wilson who was CEO of Daniel Stewart from 2010 to 2014.  He was able to dump all his shares at a ludicrous price in 2015 when Shea's old pal the fraudster Rob Terry of Quindell infamy ( floated by Daniel Stewart) got involved and the stock roofed it. So I guess Adam owes Shea a favour.

Atlantic Carbon was called Atlantic Coal and was on AIM till late 2016 when it decided it was better to delist. Ho Ho Ho.. its 2017 annual report records a record year so tough luck mug punters who bailed before the delisting, coke and hookers all round for the management and backers whio now own nearly all the shares.

A report by, analysts for hire, See Through Equity published on October 17 2018 concluded: "We initiate coverage of Atlantic Carbon Group, Plc (“Atlantic Carbon”). Our valuation analysis yields a target enterprise value of $153.9mn considering $68.0mn of total debt and an equity value of $86.8mn  "

So the company is drowning in debt but is still valued at $86.8 million so the RTO with Shea's DSS values DSS at £7.4 million. Its last accounts show it making  pre-tax profit of £91,715 but having just £50,000 cash, net debt and net current liabilities of £480,000. If that company is worth £7.4 million I am a banana. We are tod that the RTO is designed to create a shareholder list with liquidity ahead of a Standard Listing. 

I can't wait...

 

 

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