Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Despite the evident doom and gloom here I’m surprised there hasn’t been a bounce from these levels yet. Surely this is now worth less than the value of all the IP’s etc? It seems strange that no larger organisation has come in to snap up a chunk like Boohoo did with Revolution Beauty
Moneyshark, I agree it wasn’t good, but I’ve seen shocking updates and companies have still bounced from a certain level (REVB was an example).
The CEO could buy this back with the pocket change he got from the initial floatation for a start.
It was a real clanger today to give notice of a raise in advance without specific details or timeframe. Renders it pretty much uninvestable in the meantime when market assumes a discount is on horizon. Every other firm raising uses an accelerated bookbuild type process to get it done and dusted as soon as possible for good reason.
Crazy tor think that people who followed tip will need almost to 100 bag this stock to break even and it’s less than 3 years old: https://www.telegraph.co.uk/money/investing/stocks-shares/questor-computer-games-firms-founders-believe-shares-should/
Questor share tip: bosses at tinyBuil d have held on to 45pc of the company following its flotation – a vote of confidence in a bright future
“We went through years of hell before making any money.” So say the people behind tinyBuild on the computer games firm’s website. They finally got their reward last month when it joined Aim and its founders became millionaires many times over.
Alex Nichiporchik, chief executive, is now worth £204m as he owns 38.2pc of a company valued at £534m. His colleague Luke Burtis owns 7.1pc, worth £38m.
Their retention of such large stakes is hugely reassuring to this column, whose belief in “following the money” extends to the actions of company bosses as well as those of outside investors. But at least one fund manager has put his clients’ money behind tinyBuild too.
“We like the computer games sector: it is bigger than film and music combined,” said Jon Hudson of Premier Miton Investors, one of the largest institutional backers of tinyBuild. Questor likes the sector too: we have scored big gains with the likes of Frontier Developments, Codemasters and Team17.
And tinyBuild takes Team17’s approach: rather than developing its own games it takes on promising titles from independent developers and helps them with funding, marketing and technical expertise.
“Alex and Luke discovered the value of this model by direct personal experience: they wanted to release a game called No Time To Explain but were strung along by a publisher, jeopardising the entire project,” said Mr Hudson. “They realised they could help other developers to commercialise their games so they changed course to become a publisher.”
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Read Questor’s rules of investment before you follow our tips
The company says that since August 2013 it has formed partnerships with dozens of independent developers, acting as a publishing partner and “providing funding, knowledge, production, artwork, guidance, etc to make other developers’ games better”.
“They come at it from a developer’s point of view,” said Mr Hudson. He said tinyBuild selected just 1pc of the games it saw, picking those with the most promise and advising the developers on how to make their game more appealing to users. “It’s a partnership that works,” he said, “and this way you don’t have to commit much capital – it’s a low-risk way to generate a big hit.”
The ultimate goal is a game that can develop into a “franchise”: one that can remain popular through multiple versions, with spin-offs, books, prequels and so on.
Looks like Premier Minton are still involved. Surely this institutions could buy the entire company for less than their original investment :
Swedbank Robur AB 14,728,994 7.30%
Hong Kong NetEase Interactive Entertainment Limited 12,889,171 6.40%
Premier Miton Investors 9,500,000 4.70%
The lesson I've learned from this (and after subsequently assessing other AIM shares) is to never invest in an IPO within the first three years of flotation, then review the share. There's a 1000-1 chance you will miss out on a huge rise, but there's infinitely more chance of you losing a significant chunk of your original investment. A valuation of £534m to a figure of £6m in two years beggars belief. Obviously the CEO and other founder have lost a fortune, but the CEO clearly still has more than sufficient funds to totally underwrite the proposed $10m raise. The financial mismanagement is staggering; almost criminal. For those looking for a gamble and an entry point, I suppose this may be it. You might get a quick 25-50% return if it bounces a bit or t/o bid emerges. Good luck with that. I'm done with this company.
A 50% gain would take it back to where it opened yesterday after the RNS.
It opened at 4 actually so it only needs 30% from this 3.10p to do thar..
Let's see if there is a boune but if so it may only be a deceased moggy type
My fault sorry
It was 5p open actually.
Last time this dropped so much it picked back over the next few days but that RNS was horrendous.. Still at 3.10p this is very cheap now
This time is different as we know an equity raise is coming. Why buy now, when a discount looks a certainty. The alternative is that the company will cease to be a going concern in a matter of weeks.
It's hardly weeks away Teddy but I take your point that this is different this time.
They may try to do the usual pump before an equity raise. Let's face it at 3.10p it' won't need much yo shift it north
There’s the potential the CEO could lend the company money rather than via an equity raise with guarantees . At these share prices it doesn’t make sense for him to dilute, I’m sure there are better options.
Also people have assumed their revolving credit facility is gone, but I haven’t seen that explicitly stated has it? They were just referring to their levels of cash in the business from what I could tell.
Thank you, I probably missed it through the tears. You’re right that it doesn’t make sense, but surely trying to obtain credit, be that a loan from the major shareholder or elsewhere makes sense.
I can buy at 2.8p at the bottom of the bid, looks like there is downward pressure here.
Does not seem that much as gone wrong for this to fall from £1 to 2.5p? Could it go to zero?
Check out his LinkedIn profile - first time CFO with an M&A background - not the right choice here...
Another worrying sign is buys don't seem to be lifting the SP but that 5 grand sell took about 8% off the SP in a single swoop!!
Mcap hovering around 4.5 Million, which is feck all for their potential. Unable to buy at the moment, a bagger looks nailed on for the bold.
Haha Teddy bear this was your post at 8.30 today
This time is different as we know an equity raise is coming. Why buy now, when a discount looks a certainty. The alternative is that the company will cease to be a going concern in a matter of weeks.
Now all of a sudden its a buy is it haha??
I'm guessing that's your buy Teddy at 2.695??
Best of luck and let's hope there is no rise at 1p!!
2.75p now to buy but it's still only giving 2.60p to sell... the lowest buy in price has been 2.60p for this share ever... very hard to trade this devil..
Best of luck all
No Neil, I didn’t buy, the spread is killing it. I would be normally out at 8%, you have to make that just to stand still. I was tempted at 259p, (Quoted) but refrained.
2.26p now.
This could be a 1p rise by looks of it!
Will then be the time to buy.
The spread is mental, the quote is 2.5p at the top end. I can see this hitting 2p. If it bounces it will be hard.