Fool they motel12 Jun 2021 13:45
Fool they motel, episode 2. (2 of 2)
“I’ve asked myself whether I should buy UK penny stock Supple@MeCapital? I’ll say straight off that I’ve concluded I should avoid it”. (ah ok I’ll sell up. Hello is that my HL broker? Hi yes please sell all my syme shares)
“I’ll explain my reasons for steering clear and also look at the potential upside, if my caution is misconceived”. (Wowww, hold the door HL, sorry, stop on that sale, phew)
“The company targeted a first securitisation of inventories via its platform within six months. But, so far, it hasn’t managed to bring together a single deal”. (ok fair enough, HL yep sell em please, sorry about the mix up earlier)
“I’ve previously” (err, you mean no longer right?) “been sceptical about Supply@Me’s prospects. For one thing, I’m not convinced the company’s business model is actually viable”. (well thank goodness I’ve sold then)
“First, Supply@Me was sold to investors on a prospectus showing net assets of £227m — bang in line with its market capitalisation at an issue price of 0.7p a share. However, on its post-listing balance sheet, net assets were less than £1m. Goodwill had been entirely written off”. (well there you go, sale justified)
“Waiting for Godot” (Beckett wanted to explore waiting of course, describing a situation where they are waiting for something to happen, but it probably never will. Phew, lucky break for me then, thanks guys)
“the publication of this penny stock’s first audited financial statements has been put back and back.” (Fair enough)
“In view of the net assets carry-on, and the repeated delays to both the first securitisation of inventories and first audited results, Supply@Me doesn’t pass my smell test”. (ah yes, A hypothetical pass/fail "test" that gauges the moral acceptability or trustworthiness of someone or something, well I’m following your nose, if you see what I mean).
“I’d want to at least see those audited results before going anywhere near this penny stock”. (Yeah me too, although, not any more because I just sold up)
“But what if my scepticism is misconceived”? (WHAT?!)
“if the company really has found a way to revolutionise inventory monetisation through its fintech platform, the market opportunity could be vast. Supply@Me talks of an addressable market of inventory under management in the $trillions. Not a bad target for a little UK penny stock!” (HOLY CRAP! Hello, hello! is that my broker, I need to get him its mega urgent!)