junk

2464 days ago

Andalas Energy pays 150% interest on loan extension - insolvency postponed for one month - placing ahoy?

A year ago I thought that loans taken out an annualised rate of 30% such as that African Potash (AFPO) obtained from the fragrant wife of its hapless FD were a rum and coke. But that is nothing to the stunning admission today from Andalas Energy (ADL) - a loan repayable in one month at an annualised rate of 150%. Even by the standards of AIM Casino junk - Wowee.

3025 days ago

Tom Winnifrith Bearcast: Cash shells & ramping - a recipe to lose you money

This seems to be the ramparoonie de jour - cash shells and investment companies. Valuations can be crazy but if you get suckered in by the rampers you will lose money. I explain when I would invest in a cash shell and when you should not. I discuss what valuations should be and flag up some well known rampers. Mentioned en passant are: Glenwick (GWIK), CEB Resources (JUNK) - now known as Andalas -, FastForward (FFWD) and Adam Reynolds.

3692 days ago

Gulf Keystone – the Bond Market tells you this is Junk

The share price of Gulf Keystone (GKP) is driven by private investors. The bond price is driven by more informed individuals and it is now screaming out JUNK!

Two days ago the October 2017 6.25% bonds were trading at 88p. Today they are trading at 75p. That means that implied yield to maturity is c15%.. I.e. if you buy these bonds in the secondary market you will get an annual return (assuming that Gulf can repay) of 15% per annum. That is a junk bond type return.

Now ask yourself