By Nigel Somerville, The Deputy Sheriff of AIM | Wednesday 7 January 2015
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.
Yesterday, HERE, I showed that a piece of market data which was being totally misrepresented at loon central as the basis of the mother of all ramparoonies for Tern (TERN) was, in fact, incorrect. However, Tern and its advisers, rather than correct the market’s wrong perception, had seen fit to conduct a Placing on the back of the incredible rise in Tern’s shares. Well, it is now confirmed that the data upon which the ramp was based has been corrected.
You can read that corrected document HERE - turn to p6 or p7 to see that the Enterprise Value now attributed to Cryptosoft is $0.1m. Not $75m, just 0.13% of the figure quoted by the BB loons.
There are a good few dregs of life inhabiting the bulletin boards that need to take a long hard look at themselves. Their behaviour has been a disgrace: they have ramped and ramped and ramped this stock to high heaven. A good few have claimed that Signal Hill had conducted an independent valuation of Cryptosoft at $75m. Some are still at it even now. A couple of loons claimed to have emails from Signal Hill verifying that. We now know that those loons were lying and as it happens committing the criminal offence of market abuse. Go report yourselves to the FCA fellows. Go on form an orderly line.
Signal Hill’s document was a round-up of transactions which had taken place during Q3 2014. It was not voicing an opinion; it was simply doing a market round-up. It was not performing an independent valuation. And the figure quoted was Enterprise Value. Read that again: ENTERPRISE VALUE!! Not value, not forecast value or any other form of alchemy. Just plain Enterprise Value. In other words, this is what Tern has effectively paid for its investment in Cryptosoft.
But a clerical error saw Signal Hill’s roundup get the number wrong: $75m instead of $75k. When I emailed Signal Hill it was prompt, very courteous and completely open. They even sent me the source data….which stated $75,000. And within a day a fully corrected document is out.
But as for the board of Tern plc, its hibernating Nomad and Broker WH Ireland and second Broker Peterhouse Corporate Finance, and Corporate PR Firm Releaf Polhill, just what is going on? Where is the RNS?
Well, where is it?
It wasn’t hard to do a fact check: it took me a couple of minutes to email Signal Hill and it replied within five minutes.
Why won’t Tern issue an RNS? Is it because doing so would implicate them with regard to the RNS of 22 Dec 2014 which told us that there was nothing the company needed to announce? Would that also implicate WH Ireland, Peterhouse and Redleaf Polhill?
To be treating Tern’s shareholders with such total contempt is just so appalling that words fail me. If they think they can all just sit there and ride out the storm they’ve got another thing coming.
And while we are at it, what about all those discrepancies identified on Friday and Saturday last week? Where is the RNS about that, then? They’ve had plenty of time to cobble something together by now. And meanwhile the share price has cratered for three consecutive days. Three days of large double digit % falls. And no response from the board and its advisers?
Is it just because the whole thing is true, thus demonstrating total negligence and quite possibly corruption all round? Is it that they just can’t bring themselves to admit it?
What a revolting, rotten, stinking collection of scumbags.
On reflection Tom Winnifrith’s target price for Tern of 1.25p-2p (HERE) is starting to look generous. This company has uncommitted cash of less than £50,000 and is burning cash at a fair old rate so it needs to do another fund raise soon. But having seen the shares ramped to 14p then placing at 9p the stock is now 4.75p to sell. Since the placing shares only started trading yesterday all who took part in the placing will be underwater. You cannot see them coming back for another bite can you?
After this most disgraceful episode who will back the next funding? I suppose at 1p there might be a few takers but even they would be mad.
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