A few weeks back I covered Bould Opportunities (BOU) and the huge increase in the share price, and I must admit that I am surprised that the share price has managed to stay up at these levels. At the time I last wrote about this company - which recently changed its name from Photonstar LED (PSL) - the shares were trading at around 0.045p, and I have been expecting them to drop hard at some point – and still do...
The company is now a shell, as defined by AIM Rule 15, having just announced that it has disposed of its loss-making Photonstar Technology business for a nominal price of £1, with the buyer being its largest shareholder, Antos Glogowski – which was a cheaper option than putting that part of the business into administration. Now it has also announced an open offer to raise £660,000 gross at a price of just 0.0125p, which represents more than an 80% discount to the price at which it was trading at the previous day. Despite the price of the placing, and the fact that the company itself has even warned that it was unaware of any reason for the recent price rise, the shares are still somehow managing to trade at 0.04p on the ask. The offer entitles existing shareholders to apply for one 0.0125p share for each existing share that they hold, plus an option to apply for any excess shares that aren’t taken, and if all of the offer is taken up then roughly 5.3 billion new shares will hit the market. This news has led to all sorts of rumours about what is going on here, including some saying that Peterhouse will use them to cover an alleged short position – part of the pump here was based around rumours that Peterhouse had forward sold the £200,000 placing that was rejected at a recent meeting.
I fail to see how that can be the case though - not that I even believe that Peterhouse has forward sold - as only shareholders are eligible for the open offer and any shares that aren’t taken up will not be sold into the market or end up in the hands of non-shareholders. There are also other rumours that Antos Glogowski will use the open offer to take a larger stake in the company, which certainly can’t be guaranteed as he will only be able to definitely take up enough shares to maintain his current percentage holding – although he may be able to buy some more if not all of the offer shares are taken up. In terms of the funds raised, these will be used for corporate overheads and to evaluate potential reverse takeover propositions – one which is being touted is Couer Gold Holdings, where Glogowski is a director, but this company was only incorporated around nine months ago.
The only real value that I can see in Bould is the potential value of its listing, but that certainly doesn’t justify the current market cap of £2 million, especially as the cash from the open offer is likely to be used up during the process of any reverse takeover which may eventually occur. Should the share price manage to stay at this sort of level post the open offer shares hitting the market, that would give an even more ridiculous market cap of £4 million, for what was a shell on the verge of going bust. I really fail to see what the attraction is of buying at anywhere close to the current share price, and should any further funds need to be raised I’d expect it to happen at a level close to the open offer price, or maybe even lower. I think anyone buying in now must be mad and, even in the event of a reverse takeover, I can’t see existing shareholders getting anywhere close to a £4 million chunk of the new entity post-RTO.
Filed under: Bould Opportunities, Bearcast, Stephen Hope, Outrider, Frontera, R4E, Intu, AIM shares
RISK WARNING & DISCLAIMER - FiveFreeShareTips.com tips are provided by independent authors via a common carrier platform and do not represent the opinions of FiveFreeShareTips.com. FiveFreeShareTips.com does not accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at FiveFreeShareTips.com and via emails you receive from [email protected] are for your general information and use and are not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by the tipsters or FiveFreeShareTips.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Trading shares involves the risk of loss. The tipsters and FiveFreeShareTips.com shall not be liable for any losses or other damages incurred. The value of investments can go up or down and the past is not necessarily a guide of future performance.
Well actually it will be six. One every week day and one on Sunday, each landing with you at 11 AM sharp.
Unlike other services (which may always have a vested interest) we pride ourselves on our impartiality and cover all small caps including AIM. the Standard List, The Wider Main Market and NEX.
We cover small caps, penny shares, FTSE 350 stocks and blue chips. We look for red hot penny shares, Warren Buffett style value investments with yield and growth stocks. There is no technical analysis in our work just solid fundamental analysis from a team of experts with decades of stockmarket experience.
You will not agree with all we publish but if you are interested in small caps you cannot afford to ignore it either. Yo'll never be charged for the free share tips from Five Free Share Tips and given the star writers involved you know that they will move share prices.
There's no telephone number or postal address required and there is no charge, ever, for your Five Free Share Tips membership. Just free shares tips every day apart from Saturday And each day's share tip will not just be a few thoughts cobbled together but will be detailed analysis from experts.
Our experts do not just earn their living from writing. All own shares. If they own shares in a stock they cover they will declare it and will not sell until after advising a sell to our readers. And why not our tips are so good that why shouldn't our readers put their money where their mouth is?
Don't just take our word for it! Judge us on the calibre of our free share tips and join today to start receiving them from September 1 2017. If you don't like what you get delivered to your inbox unsubscribe and you will never hear from us again. So why not give it a go? Sign Up Now
We've put together a panel of top tipsters, including:
Tom Winnifrith, in his 27th year writing about shares, noted fraudbuster & dubbed "The maverick Tipster"
Chris Bailey, City whizz kid turned financial guru, rated as one of the top 50 commentators on shares on twitter, founder of Financial Orbit
Steve Moore, has worked with Tom Winnifrith for all bar 3 weeks of his working life - a noted commentator on value stocks
Malcolm Stacey, The Grandfather of Share Blogging, the founder of ShareCrazy & a best selling autthor of stockmarket books
Lucian Miers, the Bard of the Boleyn, one of the UK's best known short sellers
Gary Newman, writes about value investing on AIM, speciality is in share tips on oil and mining companies
Nigel Somerville, The Deputy Sheriff of AIM, an expert in forensic analysis a skill used to bust frauds but also to tip true value investments
The team from HotStockRockets, specialising in AIM and small cap shares which will fly on a three month view
Remember to book your place at the UK Investor Show 2018. The UK’s top investment show taking place on Saturday 21 April 2018 at the Queen Elizabeth II Conference Centre in Westminster, London. The show will feature a unique line-up of top speakers including Nigel Wray, tech queen Vin Murria, Dave Lenigas, Mark Slater, Tom Winnifrith, Adam Reynolds, Ed, Croft, Nick Leslau Luke Johnson and Dr Johnny Hon as well as 135 exhibiting small cap companies.
The hot share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Conduct Authority authorised Stockbroker or Financial Adviser. We cannot be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips. The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited. The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Some of the shares recommended on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). FiveFreeShareTips.com & its sister site ShareProphets.com defines a smaller company share as any stock traded on AIM or NEX or which has a market capitalisation of less than £300 million.