Member Info for Spikeyj

as big red said,
"a lack of clarity".

that's pretty much
par for their course.

quitie: "Any confirmation / sanction of the next phase would obviously send this flying..."

surely, share price response would depend on how
any such development was funded, & how plucky
little adme will pay for its share? - look what a big
% of the company mxo/adme has had to give away in
the last two placings just in order to get in under £1m
of net proceeds, to pay wages & keep their lights on.

adme itself still doesn't have spare cash knocking about.

large off-shore development projects in deep water off
the nigerian coast are going to cost a lot, with plenty of
scope for cost overruns & considerable execution risk.

so any big punter with pockets deep enough to take
on that size of risky project will be asking for a big
return on their investment, & adme is not in a great
bargaining position. it is possible that the sheikh
himself might want to pony up, or he might have
some friends he can introduce to offer funding, but
they will not be doing so as a charity mission. jmv.

i was wondering if kenyan remembers
what jimprice said he had heard about
dr. hon's disillusionment re MXO BoD,
including an issue re not getting paid.

(mind you, i don't know jimprice's source either.)

kentan: "It was Dr Johnny Hon who brokered the deal with The Sheikh..."

are you an insider kenyan? - or is
there any published evidence to
support that? - or are you guessing?

? kentan, what makes you think that johnny
hon still has anything to do with this company?

anyone know what fee 'pello' will be taking out
of that £500K gross? - cornhill used to rake it in.

i don't know if you should be concerned or not.
but surely there is a pretty clear lesson here, i.e.
just because a very rich person owns a chunky
minority stake in the company's shares does *not*
mean that he will be providing all the finances.

most of the burden of risk in sustaining this small
AIM company will continue to fall on the retail pis.

they won't have any meaningful change out of
that £500K (presumably before expenses? - so
a fair bit less net) for due diligence / investments.
this just pays wages, bills, travel etc for few months.

e.g

RE: Stefan
02 Aug 2019 10:44

thrashunreal1"
"As to the question of a placing, it won’t happen. They don’t need to issue more to get equity. "

perhaps advisable to keep in mind
what they stated clearly in their
annual results, not that long ago:

"... as disclosed in the annual report and accounts which will be published shortly, the Directors have a reasonable expectation that the Group has the ability to raise the additional equity finance required in order to continue in operational existence for the foreseeable future."

... they could hardly spell it out clearer than
"the additional equity finance required"?

"You post just like photo, talk after the fact."

perhaps you weren't looking at the board about 10 days ago?
if you look back, you'll see chat about likelihood of placing...

did any of you guys buy more?

"ADM Energy (ADME) concluded the week by announcing at market close on Friday an offer via PrimaryBid.com. No amounts are mentioned, so basically they’ll take anything they can get. The funds are being raised for general working capital purposes (i.e. to pay themselves), not to acquire an asset. Investors in this company thought there was a billionaire sheikh in charge, but obviously not. A good reminder that on AIM, things are rarely as they are presented."

https://www.share-talk.com/oil-man-jim-company-oil-gas-updates-11th-august-2019/

in fairness, 16p is not a huge discount
compared to friday closing price, if one
compares with many other AIM placings.
- so much better than mxo could have
done without the sheikh's presence.

majority of those buying into the placing
would be pretty happy if they can flip the
shares for between 15-20% profit over 16p,
but would also be feeling OK flipping at 10%.

dunno what pain thresholds they will
have if SP starts slipping too far below.

(they will of course talk about much bigger %s,
probably through avatars on here, twitter, etc.)

there is one fundraise in progress,
all at the same share price of 16p.

that one fundraise has two components:

one is the placing, whereby investors who already
have some connections with pello are being actively
approached by that broker to take part in the placing.

the other is the offer, whereby anyone else who
is not already connected with pello could choose
to put themselves forward through primary bid.

the payment terms for those who buy through the
placing with pello might be negotiated for more
flexibility than for those who buy via primary bid.

atb for tomorrow.

woogie, it's more about *using* money from retail investors,
rather than *taking* - and in order to use that money, it has
to be placed at risk. that's the whole point of equity funding.

(the problem is some people assuming that because the sheikh
is rich, that he won't be asking other people to risk money too.)

good AIM companies will use money from their investors in
order to take calculated risks, that will sometimes pay off.
so the pi money is being used, and the pis are shouldering
a big share of the risk if it goes wrong. but that is different
from just taking their money. ... & bad AIM companies will
pretend that they are doing the above, but will either just
divert the money straight into the pockets of BoD, and
their friends & associates, or else will splurge the cash on
risks that are poorly calculated, with bad risk/reward ratios.

i do think that the directors of pretty much all AIM companies
will try to ensure that the playing field is a little bit tilted, such
that if things go wrong the retail pis suffer proportionately more
than the BoD and bigger stakeholders will, & such that if things go
well, then retail pis will benefit, but not by by the same proportion
as the directors & their closer associates. pis can still win at times
on AIM shares, clearly, but i would suggest that they should try to
be open-eyed about what their place is in the scheme of things.

& on the whole, most AIM shares are pretty poor investments
compared to companies that operate on more senior markets.

a few pis who are very skilled at small company valuation, and
have specialist expertise in that area, will manage to spot some
good investments in AIM. a larger number of pis who are useless
about small co valuation but are realistic, cynical and nimble
about trading to catch small but repeated trades, capitalising on
the spikey volatility of AIM will also make money. but the other
pis will just tend to lose over time, unless they get v. v. lucky.

jmo.

"This is different. He doesn't need our money!"

well, i'm sure he doesn't *need* your money,
but rich people do tend to *want* to get even
richer, and so, yup, a placing is under way.

i don't think that the sheikh is here to give a
free ride to small shareholders with his money.
probably like most rich people, he will want to
get even richer by using other people's money in
order to minimise risks that his own money faces.

i am not saying he is here to con pis either, but
imv shareholders here will face the same ongoing
tradeoffs and dilemmas about placing & dilutions
versus acquiring new assets that they face in any
other AIM company - and as with any other AIM
company, it is not at all unusual for CEOs or major
stakeholders to use very, very, very positive words
about future potential, and growth ambitions, etc.

but just saying those things doesn't make them happen.

the main point about this placing is that it
might stop pis making the daft assumption
that the sheikh will just take care of all the
funding needs here, or that the funding will
just come from low interest bank loans. - all
complete nonsense, but that hasn't stopped
some on here for repeating those naive ideas.

if this is to "let the shaikh's friends in"
then they wouldn't do it by in inviting
random members of the public to
subscribe through primary bid. - they
would just ask those friends to apply
directly and then announce the placing
once those friends had taken their chunks.

offering a placement like this is what they
do when they can't find sufficient appetite
for shares amongst mates already asked.

it depends how much they get.

if they get huge amount, that would
give them loads of positive options.

more likely, smaller raise to keep the
lifestyles going & stave off the bailiffs.

they are being careful on expectation
management not stating how much they
are after! - means they cannot be seen
to have attempted an undersubscribed
placing. (in fact, pretty much whatever
amount they get, they could claim that
it was oversubscribed, since who could
prove otherwise with no target given?)

surely, enthusiasts such as gilogilo and thrashunreal1 will
treat this as a marvellous additional buying opportunity?