RE: Looking decidedly shaky23 Jun 2021 11:21
Question is what they did with the shares they bought. What is for certain is that the company now has £1m cash to fund growth sitting in the bank.
I question whether that is enough to build / launch something truly groundbreaking, but that's a longer term question and will play out in the coming weeks and months. Anything more than that is speculation inthe absence of real news.
My assumption is that they bought at 70, shares jumped to 80, and they bailed on the vast majority of their shares with a nice 15% (150k) profit. If they are now buying back in at 50p levels, fair play, they believe in future and managed to inject £1m cash at the expense of other investors.
If they did not buy back in, then it is a true pump and dump. Time will tell.
I just pulled the plug myself, on of the lucky ones as overall am roughyl neutral on it start to end. The downside risk of going to zero feels too high. And if it starts to move right way / there is some news I will come back in. It's a pretty binary situation - either they have something special which they manage to monetise, and all these ups and downs are immaterial to long term holders, or they don't / they fail to monetise the tech in which case it goes to zero.
The fact they worked to generate £1m cash for growth suggests to me there is belief they can make something of it - but £1m is a very small amount to fund anything given that there are much bigger businesses playing in this pond who could put tens of millions into the same sort of platform if they wanted to?
What would be quite galling is if they now release some news that makes the price jump back up to 70/80+ having sat on the news in the short term in order to buy up more stock at a huge discount. That would all start to feel a little legally dubious?