RE: Looking like a good entry point here25 Oct 2021 15:35
A shell company often has cash ready to buy an asset.
CTEA must be close to running out of cash entirely now as their outgoings far outweigh the pittance they bring in.
When the shell company acquires an asset it usually creates value for the company
CTEA have already acquired a company. They paid £320k for a company with 1 customer which was CTEA so essentially they had none. Sounds dodgy. Oh wait., the company has a past CTEA CEO and the current CIO listed under it's directors. Sounds even more dodgy.
The company created all of it's digital content and accounts in 2013 and hasn't updated anything since. Not one Facebook, Twitter or LinkedIn post. A company that lists Cloud Storage, Datacentres, and Hosting as some of it's services doesn't promote itself on the internet apart from an almost 10-year-old website. The website is just a load of IT buzzwords.
They have 5 directors on board who will be on a decent salary. There are about 40million warrants still to be exercised which will just further dilute the SP.
So at even at £1.7m CTEA is still overvalued and this is not a good entry point. It's been proven over the last 18months that the only contracts they are able to sign are trials or something else that has a value of £0.