Member Info for MrMagorium

Teddy, that's priced in IMO, I made a small purchase at current level. If it goes lower, I may top up, but seems like an over reaction to me and MM shaking the tree.

I recall here earlier in the year when a couple of PI exceeded the 3% threshold and ended up getting a major shafting when the SP dropped from the 7p range down to 1.5p. The one guy announced his TR1 the day before the drop also, how sick they must have felt.

Dick and Dom, trying to get a pump going!

Roger, they aren't going to announce a target and remain trading. They would suspend the SP on announcement, so saying 100% in an hour, is factually incorrect.

Jamrock, I'm relatively new to this company, made a small purchase but here's my view.

Directors have a fiduciary duty to act in the best interest of the shareholders of the business. So for the business to be in a strong financial position end of 2022, but for their performance to have detiorated significantly during the first half of 2023, there would have to be a significant reason as to why that would be. If they were in significant financial difficulty, then their duty would require an immediate announcement to the market.

I understand the CFO left, without giving hardly any notice, but had been in position 15 months. That's sometimes a big warning sign, given the CFO has oversight of the businesses finance function, including, the maintainance of the businesses financial record keeping, and the reporting of the financials to shareholders. The accounts are of course also externally audited, to ensure the records give a true and fair view to shareholders (could be argued as to how effective that tends to be thesedays!)

AIM in terms of shareholder protection though, in my opinion, is just non-existant. I've seen some pretty terrible events unfold with companies over the last 2 years or so. Be that companies selling their operating subsidiaries at a substantial discount, or undertaking a share placing, at a significant discount to the prevailing market price. Both resulting in existing shareholders experiencing substantial losses. But apparently this behaviour isn't against the law.

Definitely looks like a buy... I saw another shell got snapped up today (ALTE) I suspect we may either see some more TR1's off more savy investors or an intended RTO announcement soon enough? Trouble is, there's only 10 mil shares in issue, so they are very unlikely to be getting the shares at this level for too long.

Hedgehog bought my attention to this one, so deserves the credit, looks like a good spot by them and hopefully a fruitful investment opportunity for those taking a position.

All speculation at the end of the day Apps. Some may win or lose at these levels. We have a difference of opinion, but I respect yours and at least you can constructively put your points forward unlike some folk on these boards. Some just seem to think posting nonsense ramps is an ethical way to make cash.

Hi Apps, my understanding would be that any spike would surely have to be prior to any announced RTO? Upon an announcement the SP will suspend, for what could be months, so people surely won't be making a quick trade as you allude to with the 'spike' reference.

Chiddy, why is it going north? Do you think the new directors, who presumably don't have a holding here (at least not more than 3% according to an issued TR1), are going to undertake an RTO by raising equity at a premium?

Why would they? They have control over the company now, if they don't like the terms, they can just let this fail. Any terms has to be beneficial to them, given the SP was 0.2p prior to announcement, or 100k Market CAP.

IMHO shareholders could be held by the goolies right now. The people quoting 10p+ all disappeared. They couldn't back up any of their drivel with factual reasoning.

Sharebel and his mate Dom Joly losing people their shirts again, it would seem.

Sharebel, you've quoted your numbers clearly now.

You are saying 10 and into the teens... and i'm viewing that SP prior to any raise, so we are comparing apples with apples. You therefore think this shell has a value of 5.3+million to anyone current existing shareholders.

Let's see how that prediction pans out over the coming days and weeks.

Sharebel, was quoting 10p a few days ago and suprise the SP is tanking, whilst they are most likely offloading whatever they have, for whatever they can get.

Anyone who understands investing, knows this value is just ludicrous for this company. But something is worth, what someone is willing to pay and the MM are not your friends!

AIMHO, GLA, DYOR

When you have companies with approx 10% of the cash this has, but a market CAP of 2.5x value here. That doesn't make much sense to me. This is also a main market shell, not AIM.

I'm missing something surely.

I may be missing something...

They have not announced a target Alan, only their intention to pursue an RTO.

When a company signs a non-binding letter of Intent to undertake RTO, the directors request for the company to be suspended from trading.

You and your friends, are making out like the SP will move on the announcement, but it can't when it is suspended.

Keep it factual.

You do realise the Share would suspend on an announcement of an RTO? Then it will take months to go through. So by stating the SP will increase on an announcement is factually incorrect, as how can an SP rise when it's suspended?

It can be held in an ISA, what provider are you using?

Yes Dom Bella, are those benefits worth 5.2 million?

Sharebel, you aren't answering my question. You are just hurling insults.

I'm asking at what point an RTO doesn't become viable due to cost, and therefore why a company shouldn't seek a listing via an IPO.

10p values a company with 80k cash and couple of directors at circa 5.3 million.

What's an IPO cost? Granted, the time benefit of getting the listing. But are you really saying that the premium of 5.2 million is worthwhile as opposed to pursuing an IPO...

Apps, your logic doesn't really make sense, because if it did, you are saying all shells should be valued at 50x their current value?

This was 0.2p last week, has circa 80k in cash and no board intent on undertaking RTO. Now you are hinting at 10p per share because a couple of directors joined the BOD, but why would someone pay such a significant premium to list via a shell, as opposed to IPO.

Is an RTO via a shell, really 50x cheaper than an IPO?

I don't think it is.

Sharebel, you are missing the fact the company will have to issue shares to raise capital to make an acquisition. They don't just magically receive the net asset value of the acquisition target out of thin air... that's a fundamental flaw in your philosophy here.