4004 days ago
Some clown bought a stack of shares in AIM cesspit listed CPP (CPP) on Friday sending the shares soaring. This offers a slam dunk free money opportunity as a bear to short the stock at 4.25p-5.25p. Your upside as a shorter at 4.25p is a gain of between 3.25p and 4.25p. There seems no downside risk.
The facts are that Hamish Macgregor Ogston the founder of CPP and 57% shareholder has until May 31st to decide whether to make a bid for shares he does not own. He says he will – if he bids – pay a maximum of 1p per share. He will only hand over that cash if he gets enough acceptances to take him to 75% at which point he will delist the company.
And so under the Hamish option you get either 1p in cash (maximum) or shares in an unlisted company run by Ogston which will – I suggest – be impossible to liquidate. The market price ahead of delisting will thus be c 0.8p-1.2p.
Option 2 is that Hamish walks away.
4027 days ago
Earlier this week Zak Mir indicated that if CPP (CPP) shares closed at above 7.35p they would go to 12p and that the shares were a good risk reward buy at 7p – see HERE. There is more chance of the Pope opening a strip joint in the Vatican than of this happening. This company is worth 1p at the very best and is a slam dunk short. We should point out that Lucian is actually short.
CPP has stated very openly in an RNS on 17th April that it is, to use the technical term, absolutely buggered.
4051 days ago
It is normally crackpot lefties who bleat on about the short termist approach of some businesses which undermines capitalism, and so I venture into an area where I might find myself in the same ideological bed as gold grade loons like Polly Toynbee. Whatever… The old trout has – like the proverbial broken clock – got to be right now and again. My mind wanders into this area thanks to two companies on AIM: CPP (which is perhaps days away from going down the plughole) and Cupid which is not near the plughole. Yet.
CPP provided financial services support for big companies. The problem was that some of the services it provided were not just crap they were an outright scam. It was hugely profitable for CPP but in the end you cannot go around ripping off your customers forever because they walk. As it happens it did not get to that stage with CPP because the FSA stepped in, shut down a large part of the operation and slapped a huge fine on CPP.
4052 days ago
I advised shorting AIM listed financial services group CPP (LSE:CPP) back in the autumn on November 21st at 26.75p on the grounds that the bid talks it claimed to be in were just not going to result in any bid happening. And so it came to pass and the shares duly halved. The problem is that CPP’s business model is not working. But it is now getting much worse. Much, much worse.
