Member Info for Scorpionwinger

Dan was killed in a hit and run in Manhattan in Saturday afternoon. Very sad.

Not taking sides but I have to say Reaper makes some valid points and asks some sensible questions and yet stt retorts with noise and irrelevant smears rather than answer the questions or engage in proper debate. Interesting....

This reminds me of a video game when the goodies and baddies can press the boost button to summon a big beast. Quite entertaining banter. I think stt might be losing this one!

Well I don't think I have ever seen a share go down when a board says there is no reason for sp weakness

Not aware of any reason? Are Numis as broker clueless? Clearly more people are selling than buying and yet while level 2 is always rammed on the ask, sell volume is tiny. So either there is a huge sell order being worked; a tree shake for a buyer akin to deforestation; or a major concerted shorting effort across Rthm and Yume. I think option 2 least likely. Based on broker consensus the valuation is nuts. And the company keeps pointing to consensus so fundamentals appear to be on track. I suggest they fire Numis and get a broker who knows what's going on with trading. Unless they fear Numis will do what Citi are now doing as a revenge laden ex.

Best post of the week! Only question, are we at 8, 9, 10, 11 or 12! Or if stt is to believed it will it never be lucky 13

I'd say they are short sales accompanying the long Yume arbitrage trade - and with no disclosures or actual sales going through, one would conclude this is all via the mm's books and will, therefore in time reverse. Would be good to see daily stock lending positions - clearly no-one has an individual 0.5% short

Just out of curiosity, Citi stopped working with AiM companies (in Rthm) a year ago and are no longer a NOMAD having given up their licence. It is therefore most peculiar that their analyst should bother to write a research note which has no economic value to Citi. Answers on a postcard please...................

Presumably there's some cash tied up in debtors owning to the DataXu litigation. As the disputed invoices relate only for Jan - Mar, there may be more between Mar and June. While my gut feel tells me this will all come good, there is some very complicated analysis which needs to be done and presented in November with the half year numbers so we can all stop guessing. Why their IR team continues to provide so little clarity is beyond me -for sure the big institutional backers see the full picture - and they all seem pretty committed long term holders. Rolll on the results RNS

If they thought there was a better offer out there, the shares should be sitting at above $5.25 in the market or if not the US market must believe Rthm is substantially overvalued. Or, That the arb funds are still on holiday and have just not figured out the opportunity. Like you, I think completion risk is low. Might try to put the trade on when the US opens

Ps still can't figure out why there should be an arb spread at all, let alone of this size?

Glad we are on the same page. I agree with your vicious spiral argument until the arb spread disappears at which time the brave trade if effected through a short/long CFD strategy would be to keep the Yume long and take off the Rthm short, especially since I tend to believe that the deal will be highly positive medium term

I don't think so. As an arbitrage trade you are locking in the relative value differential The number of shares which yume holders get is fixed. Yume should be trading at close to $5.25 not $4.50 The latter values rthm shares at 29p as opposed to the current price of 36.5p. So by shorting Rthm and going long Yume surely I am locking in a gain of 7.5p irrespective of where they actually trade

I am at a loss to explain why Yuma is trading at c20pc below the see through price of the Rthm offer. Why on earth wouldn't one short Rthm and go long Yume through cfds to lock in a 20pc profit at zero net capital outlay. Only if the deal collapses (unlikely given lock ups?) would the trade not work. What am I missing?

FT...Jan 5 2010.... The top corporate financier at Seymour Pierce, the broker, has resigned after an internal investigation found errors made in a deal involving one of its clients. Richard Feigen, Seymour Pierce’s managing director, said he decided to leave the company after mistakes were uncovered relating to the handling of a client transaction he was overseeing at the time. Seymour Pierce is one of the largest brokers for small companies in London and has more Aim-quoted clients than any other stockbroker. Mr Feigen was suspended for more than a month during an internal investigation before deciding to stand down. He said: “Some errors occurred during a transaction which I was leading. I feel that as the firm’s managing director it is my duty to accept full responsibility for them, and I have therefore decided it is in the best interests of Seymour Pierce that I step down”. As managing director of the broker, whose clients include Liberty, Tottenham Hotspur football club and jeweller Theo Fennell, Mr Feigen managed day-to-day activity throughout Seymour Pierce’s investment banking, stockbroking and corporate finance divisions. Mr Feigen started in the City in 1986 as a private client broker before moving into corporate finance, and in 2003 helped lead a buy-out of Seymour Pierce.

PS The only way this will survive is with a rights issue - and that will only happen if in the next 6 months management has proved to Woodford et al that they have steadied the ship and have an investable business. There has been a steady drip feed of new bad news from this management team, so I am naive.

Yes - as credible as their last one at £2

Did you read the re-statement of profits (now losses) for each of the last 3 years?

Under the "correct" IFRS they have never made a profit They have no distributable reserves They are not and cannot pay a dividend They have to repay commission to a supplier for over charging - tip of the iceberg Gross margin has been decreasing Revenue fell off a cliff in July The debt is now almost = to market cap Management is about as trustworthy as my ex girlfriend given that every RNS nrings more and different cr*p from the black box And now we know why management bought no shares

The way I read this, it would appear that the company is another Quindell and has artificially mis-stated profits for ever and a day - in truth it is loss making every year and now customers are not renewing so it doesn't even have any revenue. With its inability to ever pay a dividend going forward and its debt pile, it's only a matter of time when this goes bust