RE: Pmg19 Feb 2020 05:38
Tyla,
Why hugely undervalued? Reasons include:
1. Lack of institutional ownership. Institutions that take a large part of a small coy like to have a degree of control - not possible with TC at the helm;
2. A perception of poor governance and a belief that PMG is simply Tom and Linda's piggybank. As indicated by:
- dubious loans to a RP coy for 'strategic information' from the same person who is head of the company. So what is he doing then in his role as head of the company?
- dubious 'strategic acquistions' from VERY related parties that includes completion of a luxury property now being paid for by shareholders. And did the above dubious loans form part of this transaction?;
3. So the main demand is from PIs, who have seen:
- no return on their investment after 10 years. No share appreciation, no SBBs, no dividends possible. The RP individuals with large holdings hardly care about the SP ATM given what they extract from the company though other means. Perhaps when they finally retire they will care;
- dilution (this is AIM, after all):
- a BOD that simply shows zero interest in shareholders. Half way down the first RNS page on LSE, the reader has already left 2019 behind!!!! And most of the non-standard RNSs are about related party transactions involving TC. The interests of shareholders are rarely, if ever, mentioned by the BOD in their bland 'progress continues to be excellent' statements.
So the share remains hugely undervalued. My take however is that the high 30's/40p is the bottom (famous last words) and that, as income improves and progress is made in the various projects, the market - which has a goldfish memory where money is concerned (especially on AIM) - will forget the above dodgy loans and acquisitions and absolute lack of concern for PI shareholders, and move the price higher. If not, well we are all f........
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