The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Red flags have abounded for ages hence the heavy short interest prior to the recent shenanigans. Adjusted EBITDA is a completely invalid and unreliable metric, particularly for this sort of company where the development costs appear to be capitalised rather than expensed hence giving a, prima facie, false boost to operating profit and increasing the balance sheet assets and lessening the impact on cash flow. Completely spurious in my opinion. And yep, trade receivables appear to be increasing materially so either customers are not paying in a timely manner or there could well be potential dodginess and payables increased by approx. 33% so one does wonder where the cash is going/has gone, especially from the recent placing... I'd be wary of the nomad walking too so DYOR. And then don't buy.
No probs. Try googling "model code" and/or "close period" and should be a fair bit of information out there. I'd suggest the FCA's handbook specifically relating to the MAR regulations but can be heavy going working your way through some of the more abstract legalese!
There are rules around when directors / Persons discharging managerial responsibility can trade shares in a company; think this is one month before quarterlies and two months before final results (not 100% sure for interims but a closed period of some sort would still apply). From my understanding, if a director/PDMR does wish to sell outside of a closed period then the usual procedure would be to obtain the relevant "permission" from a fellow director, usually the Chief Exec or Chairman in my experience, though if the director/PDMR has access to inside "price-sensitive" information then such permission should not be given in the first instance. While the timelines seem to be just about "okay" in this instance, it seems pretty clear that Management would/should have known that the interims would underperform against market expectations (i.e. through their own internal regular management accounts) and hence the share sale, especially combined with the placing at 340p circa three weeks earlier, does stink to high heaven in my opinion. Given the recent information made public about the Chief Exec then it's difficult to presume any strong corporate governance structure at Telit. All very reminiscent of Globo a couple of years ago. If there was anything stronger than strong sell I'd be clicking that as my opinion. Buyer beware.
Well that RNS has turned my Monday right round... I sold some IQE in May around 71p and bought in here; have then watched IQE race away and mentally kicked myself most days so good to see the partial recovery and now today's offer. Who knows... there may be a counter-offer on the cards from somewhere but maybe I'm just getting greedy now!
Well done all? Err, look at the price chart over any period you'd care to. Look at the trades over the recent days and weeks; peanuts really in the grand scheme of things. I don't really know this stock or much of the history etc but seems like related parties with material share ownership are simply using OPM to stop the company going bust following the "cornerstone" investor supposedly not receiving approval in China. Amazing stuff my foot.
Most of these such RNS have the "oversubscribed" line in. As you intimate in the latter half of your post, given the large discount at 11p, over-subscription is hardly surprising. Would have hoped PDMRs would have taken more than 355k shares out of the circa 15m. Ah well, at least funding now not an issue. Just need to wait for the usual percentage of flippers to take their turn and move on.
Decent RNS out this morning: "European Wealth Group Limited ('European Wealth'), the AIM-listed integrated wealth management group (AIM ticker: EWG, EWGL), today announced that it has acquired Xcap Nominees. The acquisition brings a further £30 million of assets to European Wealth's Manchester office, opened in late 2014, which has a team of six investment managers, servicing clients both within the local area and throughout the UK. The office also has an increasing international focus, providing a range of sophisticated investment services to professional intermediaries across the Far East. Further evidence of the international expertise in the Manchester office is the appointment of European Wealth as the preferred discretionary investment manager to the Montpelier Group of businesses based in Malaysia and Thailand, with combined assets under management of over £100 million. John Morton, the Executive Chairmen of European Wealth, said, "Manchester is a key regional centre for our business. This deal further strengthens the asset base of the business and emphasises our commitment to building our presence here."
...people read the latest RNS releases before commenting and querying? Worries me sometimes reading the posts on these boards.
Reflects discount for risk that deal won't go through. Not directly comparable but, as an example, look at BG's sp compared to offer Shell has had accepted.
A while.
You're a special one aren't you hinkais? Rather than castigating supposed "derampers" why don't you assess the facts of the situation with an objective viewpoint? Whatever you continue to post (spam) re the facts and figures released by the company it is clear the market does not have any faith in the results as they are otherwise the sp would be way north of these current levels and not trading on a P/E below 1! Perhaps you are simply "ramping" away... perhaps you truly believe in the investment case and/or you're now emotionally attached. Either way, in my opinion, you're likely to lose your shirt. Heed the signs my friend - get out while you can.
What was your buy-in price? How underwater are you? I'd take the loss sooner rather than later if I were you...
Do you realise how dodgy your post about a strong trading update being expected seems now? Seems you've been made aware by someone who was in possession of inside information that a trading update was due out and have dealt on the basis of it? Lo and behold an RNS appears in the afternoon. All due respect I'd be very careful as this smells rather dodgy indeed to me. Some may categorise it as, prima facie, market abuse...
For what it's worth he reckons we're in an "ultra trending situation"... Target looks like 240p in next 2-3 months: "It rather goes with the territory that as far as Bull Calls Of The Day are concerned, we should be generally looking at and looking for charts like the one currently being sported by Trakm8 Holdings. Here it can be seen how an ultra strong trending situation has been ruling the roost since the end of 2012, with the implication being that even though the stock has come up a long way over the intervening period, we should be justified in looking for further upside. The reason for the ongoing optimism is the way that over the post autumn 2014 period we have seen significant support points above the 200 day moving average, now at 127p. The vehicle for these gains has been a rising trend channel which can be drawn from as long ago as October last year. The floor of the channel currently runs at 150p, with the implication being that while above this level on a weekly close basis the upside could be as great as the 2014 resistance line projection currently pointing at 240p. The timeframe on such a move is the next 2- 3 months. In the meantime any dips towards 150p are regarded as a buying opportunity."
Was to be expected - consideration of £250k plus net cash. Gives tiny tiny bit of hope that may get few pennies in the pound back based on £1.6m MC prior to suspension.... then takes it all away with the line about "US lease renegotiation and transaction fees such that return to shareholders is expected to be minimal"... I have 90k free shares so can sort of write this off with no major hard feelings as such but, with that old devil called hindsight, should have just sold out when it was clear the writing was on the wall. Ah well, hope no-one has got too burned... or sucked in to a supposed recovery story based on the fanciful bullshine of some of the more myopic and ****tish individuals who were posting on this board. Might as well put my opinion as a Strong Sell now.......