Top-up / Average Down7 Sep 2015 17:08
Thoughts :
Think one of the big put-offs from this share (besides the ongoing attempts to reduce 'receivables' owing, which, from all accounts, is improving) is the threat to leave Aim and go to Nasdaq. This was stated on RNS Dec 9th 2014 :
" Liquidity event (trade sale or IPO of DQE Mauritius) to take place within 3 years
· DQE to be cancelled from trading on AIM and merged with DQE Mauritius as soon as possible prior to or as part of a liquidity event (trade sale or IPO of DQE Mauritius)"
To me this isn't a problem and could well result in a big jump in the value of the company before and after switch to Nasdaq. People worry that they will not be able to trade and will therefore lose all their investment. This is nonsense but obviously has led to doubters.
It is getting on to 10 months from that announcement and we only have 3 years and if I remember correctly this liquidity event must take place within this period or the $50m investment must be repaid (not sure about the exact terms as they are complicated (see the RNS)).
But in the next few months building up to November's half-year results we should definitely see some contracts announced.
Anyway, I've taken the massive plunge to top up with 6,488 taking my average down to about 10p.
Full steam ahead and I might break even - after about 4 years.