Its not shrewd at all it is outright theft!! This is priced at future profits if any 3 years down the road. Everything is priced in for years to come. 8.75p would be any sensible persons sell price in 3 yrs time. This is worth 4.2p at best. It operates at the smallest end of the sector and it wont be a walk in the park. Right now you are paying to buy something that might not even happen over the next 3 yrs. Whether you like it or not it will drift back to the placing price. True value always will out in the end.
It can't possibly go to that level because of where people are invested.
Sure it will bobble about a bit consolidating here or moving gradually up from here which is what I expect. Like with all good shares going up but not in a straight line.
This share was ramped to this level in the first place. This is now the starting point. Or things being relative this is now the price per share and it makes no difference. Indeed get in now to be on the safe side and long term hold. A good old buy and build.
Very shrewd business from MXCP - they have acquired a significant holding in a company which has potential at a price significantly lower than might have been excepted although, reading their RNS this morning, it is clear that they have paid what they believe to be a realistic price given the financial challenges being faced by PINN. I believed in PINN's potential before and it is now perhaps more likely to be realised although it is a shame if PIs have lost out as a result of Friday's fall. Now a long-term hold in my view.
We know about the issues being addressed, , but going forward, an extract from the article:-
'Pinnacle said the Ancar-B acquisition is for a total £3.5 million consideration, comprising £2.75 million in cash and £0.75 million in new shares priced at the placing price.
Ancar-B notes in most recent abbreviated accounts filed with Companies House covering the 2014 year to July, it had net assets of £1.42 million.
Pinnacle said Ancar-B generated £2.2 million in revenue in the 2015 year to July.
The Weston acquisition is for a £1.5 million total consideration, “to be satisfied in new Ordinary Shares at the Placing Price”.
Weston Communications noted in most recent abbreviated accounts covering the 2015 year to March 31, total assets less current liabilities totalled £239,716, up from £110,311 the prior year.
Pinnacle said Weston, which provides telecoms and IT support services to SMEs, councils and universities, generated revenues of £2.8 million in the 2015 year to March.
Pinnacle said Ancar-B generated earnings before interest, tax and other costs of £0.58 million (unaudited) in the most recent financial year and Weston generated earnings of £0.22 million (unaudited).
Pinnacle executive chairman, Gavin Lyons, said: “We believe that strategically there is a market opportunity for Pinnacle to become the leading provider of 'IT as a service' to the UK SME market, despite a number of operating challenges to address, by embarking on a buy and build strategy and focusing on higher margin services.
“The acquisitions of Ancar-B and Weston are the first steps in consolidating a highly fragmented market and I look forward to ensuring the organisation is focused on creating both customer and shareholder value.”
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