with everything WealthManager has said, particularly the bit about sharks loving these waters. GL. And make sure your friend is not your enemy.
if theres a deal its a multi bag. Agree, pays your money, takes your chance.
History is Key...
ABlokeinthepub, to understand the present, one must look at the past. To adequately answer your question, I’ll need to refer you to Mercom’s past. Specifically, I’ll need to refer you to its final results of the 27th of September 2013. http://www.investegate.co.uk/mercom-oil-sands-plc--mmo-/rns/final-results/201309270700070405P/ In his statement, Mercom’s elusive chairman, Dr Patrick Cross, indicates to the market that Mercom’s directors are already in the process of identifying investment opportunities which match the company’s strategy, and are evaluating the potential profitability and risks associated with these investments. That, ABlokeinthepub, is an alternative way of saying the company is undertaking due diligence. That was in September 2013 – 7 months ago! Now, has anything materialised since then? ABlokeinthepub, it would be totally inappropriate for me to state, categorically, that Mercom’s directors are incapable of closing a deal before the 24th of May 2014. Why? Because I don’t know. What I do know, however, is that one must exercise great caution with this stock. I thoroughly research my stocks before dipping my toes. I took a punt in Mercom when it had a semblance of financial order. When it had the very valuable Chard Oil Sands within its grasp. But, somewhere along the road, they adopted an adversarial approach and, in the process, underestimated their JV partner Nordic Petroleum. They, in the process, and I cannot stress this enough, misled investors by dishing out empty promises. Consequently, I lost confidence in the directors and began to gradually reduce my holding. That being said, I still have a notable holding that I can afford to lose (offset with other outperforming FTSE 250 stocks within my portfolio). What really frustrates me, however, is two things: individuals who can’t be bothered to conduct due diligence on stocks they take punts in and individuals (who have exhaustively researched their stocks) who exploit these naïve punters by luring them into spikes before making a dash for the door. This, ABlokeinthepub, is the ugly face of capitalism. The bulletin boards are perfect for these individuals as they can carry out their ‘surgical executions’ behind a mask. ABlokeinthepub, I hope your optimistic position (Mercom closing a deal before the deadline) materialises. Unfortunately for me, years of unfulfilled promises have made me sceptical. To this end, I approach this stock with extreme caution. I hope this helps. .
Thanks Wealth Manager, i was until now actually quite excited, you must be a hoot at partys (only kidding)!! It's a very interesting post and an interesting point of view and i take all the points well and truly on board. I have a question, despite the RNS wording of the 28th, do you think it possible that Due Diligence has actually been done and the RNS was buying time?? I know that an RNS didn't have to be published to buy time but keeps the punters like me in and happy for a while. Can that be a possibility or am i way off the mark in your opinion?
A Word of Caution...
Fellow posters, as most of you are aware, AIM markets are more volatile than most, especially the lightly traded shares, where the spreads are elastic. Experienced ‘sharks’ love these waters. In a relentless pursuit for a spike, they typically lure unsuspecting newbies into a stock with colourful, often misleading, language. Be aware of these individuals. By the way, they love Mercom; it ticks all their boxes – a penny share with ridiculously elastic spreads and ultrathin trading volumes. So, let me take this opportunity to put things in perspective and temper some expectations. Mercom’s 28th of February announcement stated quite clearly and succinctly that, since the adoption of its investing policy at the General Meeting on the 24th of May 2013, the directors have failed to close a deal. Actually, let me paraphrase that; since the 29th of May 2012 (first day of dealings in Mercom stock), the directors have failed to close a deal. Think about that for a moment… They haven’t been able to close a deal in 2 years and have burnt over £3 million! The company then goes on to indicate to the market that there are three opportunities in Vietnam and North America which the Company is currently undertaking due diligence on. Fellow posters, and for those of you familiar with acquisitions, due diligence exercises are arduous and lengthy. Now, under AIM Rule 15, Mercom is required to implement its investing policy by 24 May 2014, failing which the Ordinary Shares will be suspended from trading on AIM. That is 9 weeks time for a meaningful acquisition! Really? I’ve been, and still I’m, invested in Mercom for a long time; her directors don’t work well under pressure. Have a look at the company’s history. I really do hope I’m proven wrong. Oh, and by the way, prior to that, the company noted (on the 20th of January 2014) the sudden increase in its share price – another spike courtesy of the pump and dump squad – and confirmed that it was not aware of any reason for this movement. That’s coded city language for saying a company’s stock is being manipulated. People, this is a high-risk nanocap. If you can’t afford to lose money or have your money tied-up in a suspension that may last for several months then avoid this stock. Don’t believe the unrealistic rhetoric being banded around. You only need to look at today – 557,790 shares traded with a spread of 28%.....really? And this results in an 11% shareprice rise. For heavens sake, the value of those shares put together is less that £2,500! Is that something to get excited about? .
My buy still not showing here. Looks like it should be on isdx.
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