My little list of slam-dunk sells for 2020 from the AIM Casino has got off to a good start. One month into the year, they have already posted a collective 9.8% loss on a bid-to-bid basis and at least two are already scraping the barrel to keep the lights on...
Jam-Tomorrow IoT investment company Tern (TERN) has admitted that the growth in revenues across its principal investees only hit 27% last year, having forecast 50% growth just seven weeks before year-end. And on its biggest investment (Device Authority) there was nothing but waffle for a position which represented 70% of NAV at the last count. With the mid-share price sitting at a stonking 34% premium to last stated NAV, much success is already discounted yet I had a note to point out that Tern appears to be really suffering in terms of revenue growth. My correspondent points out that the noted sales grew by 126% in 2016/17, just 58% in 2017/18 and for 2018/19 that number was 27%. Call me old fashioned, but that looks like revenue growth is halving every year. For a bunch of early stage cash-hungry dogs that is not good and I still expect the market to lose patience this year.
Next up is Cynical Bear favourite URU Metals (URU), which found its way on to this year’s list following a Red Flag-strewn set of interims which it offered up at 4.23pm on New Year’s Eve Eve and showed that it is surely teetering on the edge of insolvency. It has been silence ever since but you can bet yours boots that the tin will have to be rattled soon and that will means either a massive bucket-shop discount or a plain refusal by the market to play at all. Meanwhile, AIM-China filthy Forty play Walcom (WALG) continues to limp on. A second bail-out from its CEO and CFO (not that it is a one-man band, of course) gave it enough cash to feed the electricity meter to the end of this month. Now we learn it received enough orders during January to kick the can down the road, but only until mid-February. We are told that discussions continue with its CEO/CFO for more money but I continue to believe that until that is nailed down and certain Walcom should have its shares suspended pending financial clarification. Meanwhile we learn that those CEO/CFO loans are not being made to the parent company, but to a subsidiary. One assumes that if the plug is pulled, as a major creditor he will be first in line to have discussions with the administrator even though the loan is unsecured. And of course we have now had the coronavirus outbreak which will make life even more difficult. It never rains when it pours.
Fourth up is Yu Group (YU.), which offered up a full-year trading statement which was once again full of holes. The market pushed the shares wildly higher to over 140p but they have fallen back to 105p as the market frets about net current assets – which I reckon could be pretty close to zero by now. It is surely placing ahoy…… Finally another AIM crock, Catenae (CTEA) scraped over the line with a bailout as announced on Friday lunchtime (surely no-one-is-watching o’clock) which will see boatloads of confetti issued to creditors and a tin-pot placing to dilute existing investors massively; following this the number of shares will increase from about 32 million to 107 million. Whilst the creditors are getting their shares at 1.1p, the placing shares are to be issued at just 0.4p which means that the creditors have settled for a 64% haircut by comparison. Ouch! I guess this is another reminder that if you owe the bank a quid you’ve got a problem, but if you owe the bank a million quid then it is the bank which has a problem. And with the shares having closed Thursday at 0.725p, the placing price of 0.4p represents a whopping 45% discount. And despite all that, we are told that yet more funding will be required by the end of March. What’s not to like? Er, everything! I believe there are much more gains for us to come.
Filed under: slam-dunk sells, Versarien, NAHL Group, Toople, Imperial Brands, SIG, TomWinnifrith.com
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.