Member Info for MrMagorium

Just a week ago, this board was a handful of people, now the P&D brigade appear to have taken over. I think we all know how those situations tend to unfold!

I sense a rug being pulled, therefore 1 - 1.5p

Seems a good bet IMO Hedgehog. I've made a few purchases over the last few weeks. Seems to be that listed cash shells are now a dieing breed, and if you want to see how ridiculous the price action can be, check out the performance of ITS, which was up until yesterday a cash shell on the verge of de-listing with very little cash and no BOD intent on undertaking an RTO. That changed with an RNS yesterday. It was 0.2p Friday and today traded at over 4p... circa 80k cash, 53 million shares in issue. If I compare those fundamentals to what we have here, it could give an indication of where things can go with these types of companies... AIMHO GLA DYOR

"As at 20 July 2023, the Company had cash of approximately £223,000. The Proposal which includes the waiving of certain Current Directors' fees, significantly reduces the Company's liabilities and contingent liabilities to circa £140,000, all of which will be settled as soon as reasonably practicable on the Withdrawal."

So does this suggest the shell has £223k or £80k cash following repayment of liabilities?

The current MCAP is 1.5 mil? So is it really worth a 1.4 million premium? Or 19.5x current cash?

I know another shell which has circa 600k cash and a 600k market cap; so should that be at a 12 mil market cap?

Hmmmm.... GLA, DYOR, AIMHO

I'll admit eating humble pie where this one is concerned. Well done to those who stuck by this, even when it was down in the trenches! Hopefully you held in an ISA or Sipp!!

Lots of unknowns at this stage IMO, but the news on the face of it seems positive now they are getting in a BOD who are intent on a RTO. I guess intended target, plus price they plan to raise at will be key, but that's going to be months away yet. Interesting the new BOD didn't request for the current BOD to suspend on such new this morning...

Morning all, IMO this company is finished. If there was any intention of RTO, you would likely see BOD resignations/appointments. Writing has been on the wall for a few months, although the Peel activity drummed up some excitement, it appears to look like a savy PI taking a large position, using PH as nominee, to drum up some demand and make the SP spike (let's face it, a 100k mcap company would cost someone best part of only 15k to do that) probably they made a few thousand doing that stunt.

Just sharing my thoughts, but I honestly think this is a basketcase, not a viable investment and anyone pouring thousands in to benefit from a "spike" at this stage, is taking substantial risks and should be prepared for the consequences that come with it.

AIMHO,GLA,DYOR.

IMO this is trading at a premium to it's underlying value, which in my eyes, by the way, is zero.

A BOD with a background in destroying shareholder value, no operating subsidiary, burning through it's cash reserves to stay listed with no purpose or intent of pursuing RTO. Could it have a fair few skeletons in the closet if it were to be audited properly? Hmm, but will it? No, because nobody cares... its even paying the BOD full whack despite being very little for them to do, other than shaft shareholders (that's saving their new company cash by the way, who is likely benefiting from their wise counsel... lol)

Imo, i wouldn't be surprised to see a negotiated purchase of Odey's stake, as happened with Frasers and Odey's AO world stake. Their simply isn't a market for that size sale to PI, so I'm happy to buy a small position and hold until news drops.

Company raised at 3p not too long ago, and the institutions were happy to cough up at that price. They have an affiliation with Microsoft, so surely, seems a decent trade at the current level?

GLA, DYOR

My personal take on the deal, is that is set up to take the companies assets on the cheap next year, when the companies cash dries up again.

Not a fan of this style of mez finance, as it effectively transfers all of the risk to the shareholders, and removes the rewards.

I guess that's why the SP has hardly moved above a penny!

They were in talks for debt finance, which I thought was quite optimistic unless it was some form of death spiral type loan. They have the option to raise via equity, which would have to be at least par. Ie 1p per share. That's a premium of c25% to today's price.

Will have to see how it pans out, but if they can raise enough to see them through to BE FCF, this could be a real success in my view. Just don't think the PI here will see that.

Trouble is, the sharks want something for nothing and private investors are often the ones left with zilch, right before the tree starts bearing fruit.

I've seen it happen so many times now, I've lost count.

GLA,IMHO,DYOR.

Another tip from the social media lot that has bombed completely. Where do these so called 'tipsters' get their insights?

A wise man once told me that trying to ride a wave is pointless; it is always best to position yourself for the wave! Stay well back, DYOR and ignore those that think they are in the know, it has always worked for me. You can benefit from their tactics if you hold a position before they start the ramp, but if you don't, and you listen to them, they are going to be the winners offloading and you will be the loser holding the turd!

I was intrigued by the PH activity and check in now and again.

Putting a 2000% premium on this to me though, seems crazy. But if he can provide numbers behind that value, then fair enough. If not, then IMO, he could be luring in novices to potentially lose their shirt.

DYOR, AIMHO

Jimmy on a 2000% increase, you are predicting this company is worth close to 3 million.

There's a few 'pure' cash shells at a sub 1 mil market cap; some have similar cash levels to their market cap. And a BOD intent on undertaking an RTO.

So what makes ITS so special? It barely has cash, we don't know if there's any hidden liabilities lurking and also, they don't have a BOD intent in undertaking a reversal. Yes, it has BF losses which may result in tax savings, but even then, I'm not getting anywhere near a 3 million valuation... just calling out your number as it seems excessive to me. I know you mentioned you have 30k in here, so you must have confidence.

Can ya tell what it is yet?

Https://www.businessnewsaustralia.com/articles/green-light-for-tasmania-s-first-green-hydrogen-facility-as-line-gears-up-for-lse-listing.html

Interesting read, which seems to indicate Line has a £43million valuation, pre-raise... would be interesting to understand the numbers backing that number up.

Big if, I think.

I wouldn't fancy using this as a shell, mainly because of the unscrupulous behaviour of those in power over the last 6 months . Who knows what liabilities it has/ it will be left with. Is it a cash shell, or a debt shell?

I may be wrong, hope I am, so people can recoup some profits.

2.6 Billion shares in issue... no thanks!

Thegroup, I'm not sure why you would ask a BB full of anonymous people how to reverse your friends company into this shell.

IMO, that's very foolish, because such comments could cause an influx of buys causing the SP to potentially Spike.

If what you are saying carries any truth, your friend would have already sought advice and be well on the way to exploring and undertaking a reversal.

I'm of the opinion that the remaining 40% in the brewery business alone covers the entire Market Cap here, which begs the question in respect of what the rest of the business is worth!

AIMHO,DYOR,GLA!