Inquisition24 Dec 2022 12:16
I have been scratching my head as to what has happened here, and just like many others have commented here , it does not make sense. I don’t really like making emotive posts, but today i will make an exception.
For those of u who are Bond fans(ie James not Terry), there was a villain called Gold Finger who in a sense wanted to increase his gold value by making the US gold reserve @ Fort knox worthless. I do believe this is what has happened here. They have been trying to obtain our shares through 'tree shakes'. This has not worked well and they have resorted to what i call an earthquake!! You may ask how do u know? Well i can tell you the participation from Institutional Investors and directors tell me that this dog is not dead yet. Why would you have savvy II and directors line up to board the titanic? The biggest shareholders Bill Chang and BGF have not sold a penny; on the contrary have purchased more!! This behaviour is not in the DNA of an institution that wants to make money.
Why put a subscription price at such a low level, if not to destroy the original investor base value? This has been completely subscribed to.
In November, there was a trading update that bore no indication of any trouble ahead so it beggars belief suddenly there is an issue. Also we employ 250+ people, so is the prudent action not to reduce head count? On the contrary I believe I saw on twitter the company is still hiring.
On the balance sheet, we have 8.4m so where has all the money gone?
If this action is legal, then they have pulled off a blinder, if not I welcome an invitation of behalf of HM service for those culpable (excuse the Bond Pun again)
Finally i would like to draw your attention to Stifel a brokerage firm who valued us @ 21p a few years back. One could argue since then with the recent signings we are much more valuable, but lets remain conservative.
The shares in circulation amounted to about 727m. The gives a market capitalisation of 152,670,000. I posted last month how it is possible for a deal to be done in the backround and possible the share price to fall to ward off frightened retail investors.
I and few others have commented that their recent share purchases have all come up as sells. The new shares in circulation will amount to 1.66B + 0.7b = 2.387 b. In order to maintain the original market cap, the price will have to fall to about 152,670,000/2.387b which equates to about £0.0639 or 7 pence. On the 11/05/2022 a director bought 1,000,000 @ 7p . U know who :)
Also using Barrys total share allocation as an example, he currently holds 4m shares. from here to 7 pence, he stands to make 280,000 pounds . Have a good Xmas folks
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