Member Info for lukeskyCBG

If the final results released today are to be believed, operationally and financially the company is firing on all cylinders despite the outlook for a more challenging trading environment. However management appear clueless when it comes to investor relations and the power of using progressive div policy to reinforce positive message about the company's performance and growth prospects. The fact that they still to appoint a reputable london based broker to advise them does not help. Where is the NOMAD when you need them?

Another big sell in the market today for this stock with sell orders totalling over 1.2m. Wonder what Simon from IC who was peddling this stock a couple of weeks ago has to say.

Plus the potential dilution in the shares has been always been fully disclosed by the company and therefore known by the market

Yeah but only if the related convertible debt or option holders chose to convert. I think the older investor's (GIC and GE) conversion price was > 200p and the latest debt investor EIG I think the option to purchase is at 98p. So both are currently underwater making it unlikely that they would choose to convert as they could purchase the share in the market at lower prices currently. Something else is going on here....its hard not to miss that the directors in this company have hardly purchased shares in over 12 months as the shares have dived

Unusual continued downward move in share price whilst positive trading update from the company. I sure know how to pickem

According to the last trading update from the company, this company was on track to achieve record results and and secured sufficiently cheap debt to fund this growth and develop its pipeline of projects. So slightly confused on why this share is reaching for new lows just before pre year end close trading update. Suspect the short seller are at it again on this stock

Well somebody appears to be mopping up the shares this morning.......cautiously pessimistic !!

Whats been nagging me in the background about this stock is if trading is so good and cash balance is healthy.....why then are these large shareholders rushing for the exit before results days at what appears to be bargain basement prices if the RNS trading updates from the company are to be believed.? Why has there not been an update from the company this morning to stabilise prices? Are they now in a close period prior to results next month? Many questions...limited answers !!

Yeah..... I have seen this show many times before on this stock over the last 6 months !! Never been a sustained bounce so far....only last for short period before dipping down even further. Currently trading at slightly more than a 1/3rd reported cash balance (if thats real). Hopefully its not another dead cat bounce Despite my scepticism or pessimism ....will be holding till results day mainly because its not worth selling at these prices.

Agreed GW....I suspect this will continue to drift down until result day at the end of April as any remaining private investors join in exiting their investments in this company unless the company / advisors do something here. I originally saw this stock as a value stock as most other private investors but every time I thought it had bottomed out and bought it......it has only got lower. So I think "Value Trap" is a more apt definition. Lets hope I am wrong......packing up until result day like yourself before deciding whether to exit.

They can buy it and cancel it for all I care at these prices!! On your point about broadening the shareholder base, I broadly agree but this is not a quick fix ......arguably both the BOD and brokers should have been canvassing the major non management shareholders pre IPO and periodically thereafter to better understand their exit strategy and arranged marketing /placements with interested institutions from time to time to gradually broaden the shareholder base. Unfortunately they have left the issue to fester for too long and not properly managed the exit of these major shareholders which has led to highly volatile share price which has only moved downwards. I doubt any reputable city institution would dip their feet in at this point apart from a few distressed or special situation investors who are willing to take a punt on this. IMHO both the BOD and their appointed NOMAD brokers have dropped the ball on this. So some heads need to roll for this debacle and more reputable directors and advisers hired to get them back on track.

Surely share buyback is the solution here for those major shareholders looking to exit. If the company new these shareholders were looking to sell a significant block of shares, why did the company not use the excess cash not it has on its balance sheet per last trading update (equivalent of > 20p per share) to do share buyback at these bargain basement prices? Surely that would be a better and more tax efficient method of returning excess capital then declaring special dividend. Unless of course the reported cash balance is ficticious or trading is not as rosy as the BOD seems to be painting ans the OMPs know something us private investors don't. It would not be the first time ....I can think of a few other Chinese AIM companies of late who reporting endless growth and boundless cash right up to the profit warning or delisting announcement If the cash balance is real and trading is good, the BOD of directors should really get off their behind and start being more proactive about efficient capital management. If the BOD is unfamiliar with this concept then the NOMAD advisers should be provide the required guidance to earn their keep. These huge sell-offs in the market are value destroying for us suffering shareholders who are keeping the faith and maintaining status quo would impair their ability to raise cash in the market in future if needs be. Hopefully common sense prevails at some point