Five slam-dunk sells for 2020 from Nigel Somerville

Hurricane Energy – it’s not in the Vomit list...(but could be by the end of March) says Peter Brailey HERE

Peter Brailey has already offered his list of sells for 2020 in the form of his Vomit List of useless oilers, so here is my 2020 list of Slam-Dunk sells. I doubt there will be much borrow available, so shorting may not be possible (although two might offer up some) but the main message is stay away! First up is a seemingly still obligatory member of the ShareProphets AIM-China Filthy Forty, Walcom (WALG) – a surviving sell from last year’s list which I had assumed would have been taken out and shot by now. But it has not…yet. Its balance sheet is a total disaster zone and survival even to the end of this month is dependent on the CEO again offering up loans to keep the lights on in the wake of a series of profit warnings, a bank loan which the company cannot repay and the default on monies owed by its formerly best customer. Indeed, the last we heard was that it only had enough cash to see it through to the end of 2019 and the CEO is yet to sign on the dotted line. I would have thought that a suspension is needed until financial clarification can be offered up, but it seems that AIM Regulation and the Nomad think differently in that a currently insolvent company can continue to trade on the world’s most successful growth market. That the shares are still trading is therefore, surely, a massive indictment on all concerned.

Patisserie Valerie – the real problem was lack of boardroom diversity says ShareSoc. I despair says Tom Winnifrith HERE

Second up is a Cynical Bear favourite, AIM-listed URU Metals (URU), which offered up Red Flag strewn interims at 4.23pm on New Year’s Eve Eve showing that it might be mining its own (and other companies’) shareholders but the idea of getting a spade into the ground itself seems beyond it. Oh, and the cash must be all but gone right now, with the company admitting that it will need to raise further capital in the future. Too right: the balance sheet is a mess and whilst I’m sure some spivvy bucket shop will raise a few coppers for the meter to keep the lights on, the discount will be huge and thus the shares, which have fallen from the equivalent of £22 in May 2017 to the current mark of just £1.50, are surely going to carry on dropping sharply. Sometimes the past is a very good guide to the future (but don’t tell the FCA I said that!).

Maestrano – “Contract win with major Australian rail company”… but the shares doubling? Reviewed HERE

Third up is AIM-listed Catenae Innovation (CTEA) which makes a return to the slam-dunk sell list after having had a year off. It too offered up a Red Flags at Night RNS over the Christmas break, at 5.02pm on Friday 20th December in the form of a profit warning which stank to high heaven, given that it had offered up a reassuring RNS just the day before but all of a sudden trading performance continues to be below management expectations and the Company's financial position remains weak. The stock is currently 1.1p in the middle, valuing this outfit – the former disaster that was Milestone Group – at just £0.35 million, which makes a fundraise even to feed the electricity meter a big ask. With a discounted bucket shop placing surely inked in ASAP, and certainly by the time FY19 numbers are released - and a warning from the company that without new money it will be a one-way trip to the corporate undertakers in the next couple of weeks, the stock is a sell.

ValirX: Open letter to Nomad Cairn Financial - time to reissue RNS

Fourth up comes AIM-listed jam-tomorrow AIM investment company Tern (TERN), which I made my sell of the year in the ShareProphets New Year 2020 tipsfest. The shares have had an absolutely wild ride since it came to the Casino in a refinancing and reconstruction of Silvermere back in 2013 and whilst the talk has always been positive the facts are that it is still pumping money into cash-guzzling dogs which are yet to offer up any measurable income, shareholders are being diluted with regular placings and the company has sailed very close to the wind in terms of keeping the market fully informed. The shares stand at 8.5p in the middle – a healthy premium to the last stated NAV per share of just 6.9p. And since most of that comes from a cosy deal in the merger which formed its principal investee, Device Authority, in that the two main parties were able to mark up their shares on the back of their own valuations, that 6.9p looks a tad on the generous side. Eventually the market will get bored of waiting for the Hartleys’ lorry to attend, at which point the stock will trade at a big discount to NAV. And after a good few years riding the bull market, I fancy this year will see patience run out – at which point the next fundraise will be at a steep discount and panic will set it. And of course Device Authority could prove to be a busted flush this year, with bigger and better competitors entering its IoT security market, and still no big contract to boast of. Finally, there is another survivor from last year’s list in the form of AIM-listed Yu Group (YU.). The balance sheet is a mess and it has just come out of an accounting scandal which crashed the shares but at 86p in the middle there seems to me to be plenty still to go wrong: at its last results, interims to June, showed net current assets had dropped from £6.7 million to just £3.1 million in six months. It doesn’t take the mathematical skills of Albert Einstein to see a problem here and the stock remains a stand-out sell – especially in view of its apparent cash need and a market cap of £14 million. So that is my selection for 2020. If you hold any of these, well……you’ve been warned!

AIM Market – another year of decline: fewer companies in total but more bad ones among them, the real data HERE

Filed under: Walcom, URU Metals, Catenae Innovation, Tern, Yu, Hurricane Energy, Patisserie Valerie

Tip of the year Pires 24 percent ahead in 22 days but still value says the HotStockRockets team

01/20/2020

Corporate updates frenzy - are Whitbread, Wood Group & Halfords buys?

01/17/2020

Centamin - Endeavour deal off, ups dividend, shares down. Buy says Nigel Somerville

01/16/2020

Where to place an investing bet in the gambling sector? Chris Bailey reviews...

01/15/2020

Hostelworld - recovery potential? Gary Newman reviews...

01/14/2020

Shoe Zone - full-year results suggest still income and further recovery attractions...

01/13/2020

Sainsbury, Morrison and the two quid bargain bucket level...

01/10/2020

Aston Martin - needing much more help than even James Bond can offer?

01/09/2020

Next plc - where from here? Chris Bailey reviews...

01/08/2020

Hurricane Energy - it is not in the Vomit list... but could be by the end of March...

01/07/2020

Five slam-dunk sells for 2020 from Nigel Somerville

01/06/2020

One of the 20 ShareProphets share tips of the year 2020. A buy from Tom Winnifrith...

01/03/2020

Ingenta - a recovery buy?

01/02/2020

Powerhouse Energy - still a sell after Santa update? Peter Brailey reviews...

12/31/2019

What of - and where now for - my share tips for 2019? Nigel Somerville reviews...

12/30/2019

Who might go the way of Thomas Cook in 2020? Lucian Miers reviews...

12/27/2019

Ahead of my share tips for 2020, what of those for 2019? Chris Bailey reviews...

12/24/2019

A dividend munchers update from Nigel Somerville

12/23/2019

Time for a brokerage Christmas lunch review. Chris Bailey writes...

12/20/2019

Ariana Resources - drilling news, shares well worth a look suggests Nigel Somerville

12/19/2019

Three to take the Boris bounce profits in & Unilever unsurprisingly stumbles says Chris Bailey

12/18/2019

Amino Technologies - various updates boost shares. Tom Winnifrith & Steve Moore write...

12/17/2019

SolGold - a buy for the long term from these levels?...

12/16/2019

Versarien - shocking interims & the cash is running out says Tom Winnifrith

12/13/2019

BigDish only half apologies. Not enough says Tom Winnifrith, The Sheriff of AIM...

12/12/2019

The FirstGroup share price train heads north again writes Chris Bailey...

12/11/2019

Tesco - is the cash register set to ring big? Chris Bailey writes...

12/10/2019

The Election and corporate stinkers Versarien & Purplebricks. Tom Winnifrith writes...

12/09/2019

Give me corrugated board this Christmas, not more Metro Bank or Amigo desperation says Chris Bailey

12/06/2019

Yourgene Health - a half-year results review from HotStockRockets

12/05/2019

Image Scan Holdings - full-year results & where now following recent share price action?

12/04/2019

FTSE reshuffle imminent - a review by Chris Bailey...

12/03/2019

Argo Blockchain - a speculative buy? Gary Newman reviews...

12/02/2019

Ariana Resources - potentially exciting deal to partially monetise Kiziltepe & Salinbas

11/29/2019

KEFI Minerals - after recently soaring, Tulu Kapi project update...

11/28/2019

Rolls Royce, Dignity & Sage - a catch-up by Chris Bailey

11/27/2019

Versarien, Bidstack & AFC Energy - short now or later reviews Tom Winnifrith

11/26/2019

easyJet - time to disembark? Chris Bailey reviews...

11/25/2019

Views on Royal Mail, Centrica & Johnson Matthey from a jet lagged and thoughtful Chris Bailey

11/22/2019

PetroTal - failure of finance & corporate governance control. Sell says Peter Brailey...

11/21/2019

Time for General Inaction but still short Sirius Minerals argues Lucian Miers

11/20/2019

RiverFort Global Opportunities - remains a buy say the team at HotStockRockets

11/19/2019

Volex - positive interims, a good share tip and now we upgrade...

11/18/2019

Oops...FirstGroup did it again. Chris Bailey writes...

11/15/2019

Eco Atlantic - following Jethro & Joe wells initial results analysis, Peter Brailey reviews...

11/14/2019

KEFI Minerals - financial & Tulu Kapi project updates... shares soar again & stance upgraded

11/13/2019

Bluebird Merchant Ventures - Gubong permit received, shares very cheap?...

11/12/2019

Rolls Royce remains an attractive long cycle stock considers Chris Bailey

11/11/2019

A terrible deal for Sound Energy? Gary Newman reviews...

11/08/2019

Marks & Spencer - you know what happens when there are no believers...

11/07/2019

Kicking when down - ref. Sirius Minerals. Tom Winnifrith writes...

11/06/2019

Columbus Energy Resources - Saffron prospect spud update, drilling excitement ahoy...

11/05/2019

Image Scan Holdings - a buy considers the HotStockRockets team...

11/04/2019

Large-cap earnings frenzy - Shell, Lloyds, BT, Crest Nicholson & DS Smith. Buys amongst them?

11/01/2019

Tom Winnifrith reviews - is lying and fraud acceptable on the London Market?

10/30/2019

M&G - a spin-off opportunity? Chris Bailey reviews...

10/29/2019

Solid State - half-year trading update, still a buy?

10/28/2019

Ariana Resources - a junior gold conviction buy? Nigel Somerville reviews...

10/25/2019

Whitbread - a buy at/around the forty quid level?

10/24/2019

After the Woodford scandal...how is the house of Hargreaves Lansdown looking?

10/23/2019

If it sounds too good to be true...which brings me back to Versarien writes Tom Winnifrith...

10/22/2019

JKX Oil & Gas - a buy at current levels says Gary Newman

10/21/2019

Ariana Resources - key licence renewal, value soon to be highlighted?

10/18/2019

Next plc - would I be selling too? Reviews Chris Bailey

10/17/2019

Yourgene Health - much more to come? A review from HotStockRockets...

10/16/2019

OptiBiotix Health - looks good reasons to continue to consider a strong buy

10/15/2019

Bushveld Minerals currently offers a buying opportunity says Gary Newman

10/14/2019

Altyn - pleasing Resources & Reserves upgrade, remains a gold recovery buy

10/11/2019

GVC ups its numbers again - still happy to make a bet on this one

10/10/2019

Staffing naturally struggles but easyJet continues to impress says Chris Bailey

10/09/2019

Good luck BP shareholders with the man to win over the millennials says Chris Bailey

10/08/2019

Could Ted Baker be a zero? Tom Winnifrith reviews...

10/07/2019

BigDish - evil spin doctor, the Sith Lord Zak Mir, needs to get his act together...

10/04/2019

Tesco and Metro Bank prove management matters

10/03/2019

I descend to the AIM cesspit but emerge still loving up Breedon Group says Chris Bailey

10/02/2019

Big Sofa - interims & placing, Strong buy says Tom Winnifrith for HotStockRockets

10/01/2019

Purplebricks - time to get off the fence, sell at 110p says Lucian Miers

09/30/2019

Columbus Energy Resources - SWP updated prospectivity, drilling excitement ahoy

09/27/2019

Thoughts on PZ Cussons & on Aston Martin raising money at 12% from Chris Bailey

09/26/2019

The Penny Finally Drops at PureCircle says Lucian Miers

09/25/2019

Is it good or bad that M&S loses another CFO? Chris Bailey reviews...

09/24/2019

Petra Diamonds - a speculative buy suggests Gary Newman

09/23/2019

Next, Diageo & Johnson Matthey - large caps are all about levels says Chris Bailey

09/20/2019

Petropavlovsk - remains a buy after interims say Tom Winnifrith & Steve Moore

09/19/2019

Eco Atlantic - good value or guidance required from a film star? Peter Brailey writes...

09/18/2019

Versarien - the point at which it must deliver is approaching says Lucian Miers

09/17/2019

5 slam-dunk sells for 2019 - September update. Nigel Somerville writes...

09/16/2019

Barclays & Lloyds fess up to new PPI horrors... but that is fine. Chris Bailey writes...

09/12/2019

Finding it hard to find any reason not to invest in Jadestone Energy says Gary Newman

09/11/2019

Ferrexpo - time for another go says Lucian Miers...

09/10/2019

Intu Properties - when even a takeover cannot help...

09/09/2019

Boohoo says boo hoo to the doubters. Chris Bailey writes...

09/06/2019

President Energy can weather the economic problems in Argentina considers Gary Newman

09/05/2019

IQE - why that shiny new debt facility?

09/04/2019

Horizonte Minerals - after positive news on funding...

09/03/2019

Whilst some go back to school, M&S goes back to the FTSE-250...

09/02/2019

Optibiotix - interims do not impress but it really is a strong buy argues Tom Winnifrith

08/30/2019

Another Crack at Wayfair says Lucian Miers

08/29/2019

Motels, gold and the stock no active investor should buy. Chris Bailey writes...

08/28/2019

ITM Power - a buy on a long term investment basis considers Peter Brailey

08/27/2019

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