1053 days ago
For the past year myself and Gary Newman have repeatedly warned about the crazy valuation of Remote Monitored Systems (RMS), about the director lying – another one exposed today – and about the collapsing face mask bubble. We were met with derision and abuse for numerous online trolls. On a day when our analysis has been wholly vindicated with Remote shares crashing, here are three of those trolls in action.
3514 days ago
Asian Citrus (ACHL) appears to be one of the better Chinese stocks on the AIM Casino but although it now trades at a steep discount to stated net cash and a vast discount to net assets it just cannot qualify as a value investment and you’d be mad to touch its shares with a bargepole. In fact its a sell. Here’s why.
First a little reminder of the history of this producer of Oranges and to a lesser extent bananas. It listed in AIM in 2005 at 112p a share. Now let’s wind forward to December 2013 when someone purporting to be a value investor a Mr Marcel Springorum wrote:
4114 days ago
I tried to steer Zak Mir away from the dark side of Technical Analysis and towards the true shining path of fundamental research last night. Of course I failed. Zak explained that as a semi-literate Old Harrovian he had to stick to charts. Words fail me. Or rather they fail him. That is the problem…. But, during the course of our discussions, he sent over a table of the highest yielders in the FTSE 250 Index and it is illuminating. The three highest yielders (Cable & Wireless, First Group and Man Group) offer such moth watering yields that they are too good to be true. The yield tells you that the dividend must be cut.
Below that trio, there are only 11 stocks (out of the 247 that remain) that offer 6% or more. Frankly, I would not be terribly sure that all of them will hold their payouts. As a value investor this is pretty alarming.
4114 days ago
Cape (CIU), the FTSE 250 constituent which provides essential, non-mechanical support services to the energy and mineral resources sectors had a pretty dreadful 2012. On 29th March its CEO Martin May stood down with immediate effect. Six months later we had a repeat announcement, this time it was the FD going. In between the company served up a dismal set of interim numbers, warned of a downturn in trading in Asia and took a £14 million write-off against current and estimated future losses on the Arzew LNG contract in Algeria. Frankly it could get worse. The company has already flagged that given declining margins in its Asian business it could take an enormous hit in terms of goodwill write-offs in the year end numbers as it issued a profits warning on November 12th. It all sounds pretty dreadful which is why the shares are trading at a near year low. As a contrarian investor and a value investor I see this as an opportunity.
