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Doesn't look like last months Director Deal @ 0.4p worked out very well, seeing as 10% of the business has been sold since then.
They should change the initials to POS.
Each share has a warrant exercisable at 0.70 ensuring any good news has just enough juice to let them exit the placement shares whilst putting a cap on the SP.
Another hole in the middle of nowhere, some dubious test results at some point and these lads and their cohorts sell us lot their inflated confetti placement shares... they will be victim of their own reputation soon
No, what will be interesting is the amounts frittered on director salaries, Admin expenses and "other" misc items.
This is after all just a £2m MCAP tiddler.
Half year report stated Admin Expenses alone at £335k which is £670k per year which for a company with £2m MCAP is a lot imo. It's 33% of the MCAP just on Admin. That kind of situation tends to sap shareholder value and create constant need for fundraises/dilution imo. Who wants to invest in AIM tiddlers to see their cash sapped away on Admin Expenses??
This was a key point raised by Dominic Frisby at the 2014UK Investor Show where he , Bell and a few others sat on a panel.
Frisby berated badly behaved miners/explorers citing statistics that revealed that more than 50% of all funds raised went to management rather than "in the ground" and that a whole raft of lawyers and fund raise companies have emerged to support that poor situation and all need to be cleaned up.
At the same investor show with Bell on the panel, chairman of Wishbone Gold, Richard Poulden gave his advice on how to pick AIM stocks of this nature. He said the following:
"Richard Poulden Criteria
"You should look at how much management own of the company, it's very important.
If they only own 3%, they'll go out and raise money to pay themselves as day follows night.
The next thing is you should look at the G and A (General and Admin) costs, tremendously important.
How much money is actually going into the ground ?
Are they paying themselves stupid salaries ?
How much skin do they have in the game
And that really . . . will give you the best stock picks."
DYOR
What will be interesting is the amount of 3% and above in the placing, and if the new director
Has bought in before hand , 2020 is going to be a very interesting year for power metal
Contary to some past private investors.
Totally agreed, pay yourself silly money once the company is actually making a profit (from its ventures not placings) and before then why not a small salary say 20-40k. I avoid these type of companies like the plague now but learned the hard way. ECR one I got done on, one of PJ’s jam tomorrow best.
bluesky : "potential is there for sure"
The "jam tomorrow" notion of potential is what feeds dilution oriented directors. First establish whether the directors are taking silly salaries and if they are expending preposterous amounts on admin and other expenses. If they are, then the value in the share is being stripped away and unless there are projects generating real income, you'll just see constant dilution and fundraises to pay for those salaries and expenses ad nauseum. Gravy train, lifestyle venture etc.
When the full year report comes out here you will be able to see what the total amounts are frittered on those overheads vs the income and liabilities. DYOR
who cares if one is sarcastic or supportive. with those interesting projects, potential is there for sure. if POW will deliver or not is most probably a question you will not get an answer for within a few weeks. things take time. depending on how you look at it, there are plenty of good and bad examples out there.
FYI
Recent Half Year Report here (to end Mar 2019) stated Admin Expenses at £335,000
So double that up for a full year and you're pretty much eating away all of that £700k placing cash right there.
Shareholder value? Can't see any myself. Each to their own of course and always DYOR.
Shack22 - "How much of this will go towards staff wages. Anyone know how much PJ takes for wages and expenses?"
You'll find out in the Half Year and Full Year reports. Bell has form here as he has taken (imo) silly salaries from RRR and RGM for years and expended £millions upon £millions in admin and other expenses. They were just lifestyle ventures imo.
There's no reason for me personally to expect tings will be any different here.
Wow a fund raise just like has been mentioned on here by many since the last positive RNS landed. How much of this will go towards staff wages. Anyone know how much PJ takes for wages and expenses?
You can only laugh TBH. Classic Bell MO. Stick out a pithy forward looking update RNS and then hit the naïve mugs with a placing. All the usual woolly spiel in the RNS that followers of RRR and RGM have seen for years:
"making great progress"
"expect further updates"
"we may move ahead"
"considerable upside potential"
"it is postulated, the potential"
etc etc
Can't believe people fall for this stuff any more but each to their own.
Nothing will ever change with Bell imo, his MO is too well established now.
What happened with both RRR and RGM is the constant placings and crazy expenditure on Admin and other expenses sapped all value from the share and drove the SP down to the nominal share price of 0.1p. Bell then simply lowered the nominal share price of both companies to 0.01p so dilution could continue. He also then did share consolidations with both companies.
Here the Bid shows above at 0.35p. If the same outcome unfolds from Bell's MO then this also will sink towards its nominal share price and so we can then expect similar capital reorganisations. Rinse repeat ad nauseam. DYOR
Well now thats out the way , they can start planning the next one
Mr magic, we beg to disagree, the placing was at the current market price , in 6 months time
Speak to me again I will buy and sell as I wish.
shareguru - "the past is the past and whilst i understand alot of money was lost. this is the future."
I can't believe you kept a straight face whilst typing that nonsense. The past always remains the future when the same
people who orchestrated that past remain in position. Their Modus Operandi's are well established and never change.
One only has to look at what Bell has done with RRR and RGM to see what that MO is. The SPs of both utterly decimated
over and over and over for years with endless dilution and ridiculous expenditure on Admin and other expenses. Lifestyle ventures imo. There really can't be that many mugs left to fall for that MO imo. DYOR.
i get sick and tired of sarcastic comments, the sells today are part of the rns the other week , an old shareholder
coming out , once gone we should start to go north.
the past is the past and whilst i understand alot of money was lost. this is the future.
Didn't everyone get wiped out at the Alamo?
Been watching since SULA, bought some as ABM, now hoping for POW to do it better. Hopefully it will