Newsflash for the Snoozers - Part 25

Monday, 16th January 2017 10:36 - by Moosh

Empyrean Energy (EME) Wow, what an efficient price rise based on nothing at all fundamental over the last few weeks! I have previously mentioned that I am still a holder of EME so I had no problem with reducing my exposure in this most unexpected of price elevations because the company aren’t going to be propping up the fundamentals of EME at least until 2019 so any rises between now and then are likely to be short-lived since there is nothing tangible to base them on.

I am also not surprised that a major shareholder – Richard Appleby – also offloaded some of his holding into the rise too (which was after I sold so I didn’t follow in his steps), so maybe he too has reservations about EME after only adding to his holding last month.

I am wondering why some shareholders think that there might be a second payout from the balancing escrow amount due soon. In my opinion I think this balancing payment is likely to be used to pay Gaz Bisht for future services provided, assuming shareholders don’t agree to a potential dilution at 2p instead. Has anyone else not wondered either why the CEO, Tom Kelly hasn’t actually bought any EME shares in over 4 years – even when it was a profitable company before it sold its Sugarloaf asset?

I think current and future shareholders should think twice before chucking capital at EME since it does make me wonder why Mr Kelly has not been building up shares in his own company beyond his already substantial amount, but he does seem to be satisfied in taking a regular salary from it to feather his own nest. I won’t be buying any more EME until I see Tom Kelly start buying more shares in his company, so why should you?

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.