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Independent Resources – The Pump and the Dump (on mug punters)

Tom Winnifrith
Sunday 1 June 2014

This is just par for the course on the AIM Cesspit – today’s less in how crony capitalism sees private investors shafted on a daily basis comes from the toerags at Independent Resources (IRG). This is just shocking.

Twelve days ago, with the shares at 5p, I helpfully pointed out that Independent was almost certainly almost insolvent HERE – that is to say its net current assets were almost certainly negative.

On 25th May this article appeared on a certain website:

Independent Resources (LON:IRG) £1.50 again you could profit more than 3000%

Independent Resources has taken a bit of a bashing since 2011, with the earthquake in the Po Valley having seriously put into question the value of the Rivara asset, but thankfully all looks set to change and investors can either grab a great long term hold… 

Oddly the article did not mention that at that point Independent was technically more or less bust. Lo and behold private investors lapped it up and bought shares in the market sending the stock to 6.4p. Lo and behold a placing day has raised £2.76 million at 3p. 

So how does this work? And who benefits?

on ShareProphets | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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