This is a direct quote from Mr A J Bonner inter alia ...."After carefully considering Pinnacle’s growth and strategic objectives, we believe that a share consolidation could prove beneficial to the company and its shareholders,.." What does that actually say and more importantly what does ir mean? Why and wherefore! Why will it prove beneficial to the company and its shareholders? Who says so!
As we are keeping things accurate. The open market purchases were at low volumes and the share price fell significantly. The placing price was .29 but the prevailing share price was significantly higher. The market took an average to come up with 18%. We can dance around the hand bag numbers all day long. The significance is most of the director purchases have been indulged on favourable terms. What matters is why has PINN's share price underperformed its sector when the Company is allegedly improving. The share price should be "flying" so what is stifling share price enhancement and shareholder value that is diminishing. We are both in tune to the prospects but the perception is different and has been since before the alleged meteoric rise. No one can predict the share price but on fundamentals PINN should fly but it isn't and no consolidation can change that as the market cap stays the same and the company stays the same so why indulge a consolidation? what will it achieve?
Just to keep things accurate, Alan Bonner has bought several times on the open market at prices such as 0.55 & 0.42. As for participating in buying shares in placings, lets not forget that 4 directors bought shares at 0.35p in a placing, this was a placing at an 18% premium to the then SP of 0.29
Hi Karina1. I understand your stance but I am not losing sight of AIM's corporate equity game alsoalso. PTCM and PINN cannot be compared on a like for like basis as theire corporate structures are like chalk and cheese. I too have followed PINN for more years than I can remember but keeping a proper perspective and feet on the ground. I agree that all the elements are there with provisos the market "city" and analysts recognise that also and start waxing lyrical and see what we see. I too have accumulated in PINN. But in real terms the Directors of PINN have not accumulated from the open market but indulged in placings where the terms are significantly better. How many options do the PINN directors own? A move from AIM would be a smart move!
PINN's directors do not have significant shareholdings?? Alan Bonner 10.32%, Darron Giddens 5.96%, Tom Black 2.76% We await to hear Dr Dodds holding after the AGM. A number of the team there also have what I would call significant holdings.
I assume you mean PTCM but then the Chairman there holds 11.66% and the CEO 2.42% ?
I would imagine the £2.6m placing cash makes Pinns balance sheet look incredibly strong.....
PINN's directors do not have significant shareholdings. And unlike PINN their balance sheet is in a much stronger state so the two are like chalk and cheese. The point I am making is that PINN has to strengthen its balance sheet and I would like to see directors taking more shares from the open market rather than part indulging in cheap placing shares.
I was advised recently by someone very wise to take a look at PTCM. Here's a brief run down on them for you.
Overall they were pretty friendless, lack of news, SP going nowhere for years bar some spiking. Then there was a change of Non Exec Directors towards the end of 2012, who took a very decent shareholding........ Make up your own mind, but compare them to Pinnacle
13/01/2013 PTCM Share price 4p Turnover £1m Loss of £200k in the last full year numbers
14/01/2013 Change of nomad
14/01/2013 A very upbeat trading statement issued, the first for almost 2 years - sounds familiar?
28/02/2013 £4m placing to implement the next phase of its strategy - heard that somewhere before?
28/02/2013 PI's asking "how the f#ck did they manage with their market cap, SP, losses" etc etc - Pinn anyone?
19/03/2013 Hargreaves Hale increase their holding in PTCM to 11.1779% - You may be thinking I am making this up now......
Newgate Threadneedle also look after PTCM........
Now where do PTCM differ from Pinn?
Their market cap is now £14.2m on an H1 2012 revenue of £1.69m and loss of £1.15m in the same period.
Their share price is now 9.6p with a high in the last 2 months of 13.5p, up from 4p in January
Pinnacle appear to be following the same process. In the 2 months since PTCM completed these changes, their SP has risen 240%, with a high of 337% in less than 3 months.
Hi Karina1. If there are lessons to be learned from the corporate equity slight of hand trick ANGM is allegedly the current model! PINN and ANGM are different trading animals but they each play out the same corporate equity game with the same rules!
Those institutional investors will support every placing and secondary issue going as that is what they do they will eventually dilute most if not all private investors out of existence and then vote for a very lucrative share reorganisation and then perhaps sell out to the highest bidder, these institutions have long arms and deep pockets and know very well how to play the corporate card trick! much to the annoyance and expense of the private shareholders. Most if not all of PINN's news output over the last three years has fallen on deaf "city" and analysts ears. If PINN is to break the mould of AIM then why are not many more savvy investors piling in who have access to all publicly available information? I can see your point but I can also see the corporate slight of hand point too.
Everyones entitled to their view. I would counter, however, that I cannot see Octopus, ISIS, Herald etc signing up to an endless stream of placings and a nil return on their investment over 5 years. I hope to have a bit more on this soon. Do you think Tom Black getting involved for a £10k a year salary, or a return on his holding ?
The real news in the C G C deal is less than obvious. Pinnacle are telling us they can now provide unrestricted wireless access ANYWHERE. That could be a field in the middle of nowhere (festivals, country shows, concerts etc) to a sports stadium where the mobile network fails under capacity. Now if you provide the wi-fi you also control the content and advertising....... It is pretty earth shattering to me, the possibilities are endless.
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