4014 days ago
Right now resources stocks listed on the Cesspit AIM market have a sort of Freddie Starr status. The old boy has not been charged and folks give him the benefit of the doubt but it is not exactly like he is getting a rush of bookings. And so profitable stocks trade at a premium to cash and those that are not profitable discount severe dilution but not bankruptcy. But that could change.
There is a story doing the rounds about a resource darling which I cannot verify although the source seems to be kosher. As such I shall not name the company in question. Over at IG Index almost all of those betting on it are long. They have been long and wrong for a while but while the shares have slid noticeable they have not collapsed. On the Bulletin Boards sentiment is still gushingly positive despite the slide.
4014 days ago
I seem to remember that there used to be an AIM Australia Day party. The “cesspit” meets a bunch of folks from a country which started its colonial life as a penal colony. It sounds like a hoot. But I guess that I am not going to get invited if such an event still takes place. Or perhaps it never did and was just a figment of my imagination – a sort of party for white collar folk held in Jabba the Hut’s Bar. Did Princess Leia attend this party? Which PR firm does she work for as I’d like a briefing? And which dodgy mining stock is Jabba promoting today? We need to know.
I slightly digress, but I am a Star Wars groupie and Carrie Fisher is always welcome at Chez Winnifrith to pop on over and drone on yet again about her celeb parents and all that cocaine she took any time. Now,where was I? Oh yes, in that water and snake filled garbage crusher on the Death Star when Luke, Han, Chewie and Leia almost get crushed before R2D2 and C3PO save them by hacking into the control system. I refer of course to AIM.
It seems that barely a day goes by without me feeling compelled to vent my anger about some outrage inflicted on investors on the cesspit. But, it strikes me that a disproportionate number of the stocks that I write about in this vein, are dual listed on the ASX and are primarily Australian companies
4015 days ago
I described earlier in the week the disgraceful tale of Astar Minerals (ASTA), a sorry saga of investors getting screwed by advisers and directors banking fees. It is the sort of tale that is all too common in the cesspit that is the bottom end of AIM. You can check out the story here but at the time Astar shares traded at 0.35p valuing it at £1 million. Ho. Ho. Ho.
Astar is, of course, worth nothing like £1 million. It has £200,000 cash and every day that goes by the parasites that are its advisors nibble away at that figure. I reckon that the costs of staying on Aim for a year will be c£100,000 meaning that as an investment company it will have to beat Warren Buffett’s long term batting average by more than four times just to maintain its net assets position.
