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i take your words for it
Thanks Ian.B. A lot of fairly clued up investors are coming together on the same page on this one. ADSS are clearly on the diversification ladder. If they have learn't anything of late it will be that they need a news rich period. I think they have already secured contracts with a locally very well established company. Question is do they need the funding before or after to secure the initial contracts. Just because they have asked for authority to place shares doesn't mean they will need or want to issue them all at once. Quite to the contrary in fact. The consensus here is that news is pending to boost the SP - they still have cash in the bank to get some cash generating contracts bagged and Orchid are no doubt happy to help given their cut. Get a couple more to continue to support the SP and then release some shares into the market at considerably higher than 0.6p to secure bigger more lucrative contracts - repeat. One can hope but this is how things happen on AIM. We've bounced from here to 1.37p and 1.12p in a day. This lost another c50% recently as people translated the share issue as plain dilution. If this is anything but then the upside reward is truly worth the risk. MM's aren't holding much stock again meaning a buying flurry will take us towards 0.9p as it did fairly easily a few sessions back before the share RNS hit. Money will need to enter fairly quickly to take advantage of this potential opportunity at this level and benefit from the full rise.
shareprophets cont. That is pretty much all we know about this new venture at this stage other than it is obviously an attempt by Atlas to diversify away from its exposure to oil and gas. Gary pointed out that “it is still too early to see how lucrative” the deal might be, but that thinking misses the possible trading opportunity. Atlas cannot issue new shares until after 01 December. This means there is no risk of a nasty placement between now and Monday 30 November. If Atlas releases an announcement or two before this date, spelling out how wonderfully lucrative the new JV might be and all the marvellous potential, you can just imagine the response. Let’s see. Worst case is Atlas doesn’t issue an announcement or if it does it is a damp squib. If the share price hasn’t moved higher by 30 November, I can simply cut the position. Definitely this is a gamble on sentiment and this site’s puritans will no doubt scream “bargepole” in the comments section below, but this is a tightly managed trade within strict constraints. - See more at: http://www.shareprophets.com/views/16484/atlas-developments-worth-a-gamble-at-06p#sthash.qv6fPPAF.dpuf
Over the last few days I took a gamble that Atlas Developments (ADSS) is going to deliver some positive news before the end of the month. This is a punt on a stock which is widely loathed and as Gary Newman would have us believe is meant to be a “massive bargepole stock, with dilution coming”. I agree with a lot of what Gary has to say about Atlas, but I think he has overlooked the possibility the company could release a surprise RNS before the end of the month. Here’s why. I don’t doubt for one second that Atlas is going to raise more money. The only reason the directors want shareholders to grant them authority to issue up to 500million new shares is to provide them with headroom to recapitalise the business. With its exposure to the oil & gas sector it is no wonder that Atlas has struggled as much as it has. There might still be some potential in the company’s existing business model, but if it does not have the cash to survive this rough period of capital spending cuts any such potential is irrelevant. After this year’s nasty profits warnings, which smashed Atlas’ share price lower, it’s been clear that this business was going to need to tap the markets for more funds. In July’s “Trading Update”, Atlas forecast its year-end cash balance “to be in the region of US$2.0-2.5 million”. Even if the company meets this target (and it would be a spectacular own goal if it doesn’t), this will likely not be enough to fund operations that far into 2016. According to the last set of interim results Atlas’ net cash outflow from operating activities in the year to 30 June was $8.4million. In the absence of a recovery in the price of oil, even taking into account any cost cutting measures, Atlas’ forecast cash balance would only fund about 4 months worth of operations. A placement is coming. Given how categorical Atlas’ numbers appear to be, why have I gambled on this stock? The rationale is quite simple. Atlas’ general meeting, at which shareholders are being asked to grant the directors the ability to issue new shares, is not until 01 December. This gives the company a little under three weeks to issue an announcement or two to boost the share price. And it has already set the scene to do precisely this. On 03 November Atlas announced a Joint Venture (JV) with the Orchid Group of Ethiopia. Orchid Group employs 2,000 staff and is reported to be a “prominent infrastructure, construction & logistics company”. The JV will be split 50-50 and “aims to provide services to clients primarily in the natural resource development and infrastructure sectors, through civil engineering, project management, work-force accommodation solutions and on-going life support services”. That is pretty much all we know about this new venture at this stage other than it is obviously an attempt by Atlas to diversify away
Are you able to paste up the rest of the article Parkdog? Tried resetting my Shareprophet password several times and it still say's its incorrect. Seems like a pretty useless site. Thanks.
Atlas cannot issue new shares until after 01 December. This means there is no risk of a nasty placement between now and Monday 30 November. If Atlas releases an announcement or two before this date, spelling out how wonderfully lucrative the new JV might be and all the marvellous potential, you can just imagine the response. - See more at: http://www.shareprophets.com/views/16484/atlas-developments-worth-a-gamble-at-06p#sthash.R23vmXyL.dpuf
Any thoughts why this is moving north in Kenya?
its up again t0 3.70 why so large difference.
Up again (9.6%).something definitely going on.
Blimey this thing is ticking up very fast on nothing! first buy @ 60 was small and then next at 64!? Loving it, a slow decline followed by a springy bounce
Am I thinking too much into this but isn't unusual that there's been no declared trades at all this morning? This is particularly strange when one considers the interesting activity at the end of yesterday. I would like to think that position building is happening, in anticipation of further news. Maybe it's just me looking for something interesting in otherwise dull day at work.
can,t buy
Whether it's legit or not. There will be another push past 1p. Fill up for a bag.
So the rise is tomorrow then,,,,,,,
Possible yes if news received and some transparency given to existing operations and latest situation on cash burn...but imo unlikely before the approval of (potentially) massive dilution.
Barely a sell all day, loving my average down at 0.5496 :) now sitting at 0.74 very happy with that this can do 1p easy it's bounced of this floor twice already in the last 3 months.
it will if they deliver news on a fat potash deal...if they dont it wont. the jv hasnt been done for nothing imo. question is will it be pre or post the GM. interesting buying action this pm.
they will follow
900,000 buy
900,000 buy
I'm certainly wishing for that. Its been a strange day, dropped on hardly any volume, spread widening a lot, Nairobi still rising. Literally who knows......... Confusing the life out of me atm. Just a hold and hope now for me
this is going to fly ?
Still rising, sitting well over 2p equivalent now
Big project in ethiopia!