If you asked me what is the easiest way to lose money then I'd say (in general) invest in a company with a multi-million pound capitalisation that has next to zero revenues and clearly needs paid cheerleaders to try to keep the share price propped up until the next dilutive fund raising. True jam tomorrow companies.
Here's a quick list of companies to avoid at all costs.
OptiBiotix (Opti), Premiatha Health (Nipt), Concepta and Big Sofa Technologies.
Firstly, I have chosen these companies because they boast the toxic combination of someone called Adam Reynolds and Tom Winnifrith. Organ grinder and monkey respectively.
Secondly, they all have multi-million pound market caps. based on hot air and the promises of vast riches to come. You'll be lucky if even one of these companies actually fulfills anything like it's promise. I have doubts any will get anywhere even if they survive at all.
If you care to look at their reports you'll also see that the revenues they generate are next to nothing and it goes without saying that profits are years away. The one thing you will be able to guarantee is that there'll be plenty of dilutive fundraisings since they'll all struggle to generate any cash.
Let's look at a couple of these companies shall we.
OptiBiotix. I've written about this company before. Always on the verge of multi-million pound deals, and has been since I set up a thread getting towards 1.5 years ago:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=35291865
Filter all the trolls (that's pretty everyone except me :) ) and you'll see I've been absolutely bang on with this one.
Understandably the share price has gone nowhere in this time since it truly is a jam tomorrow stock. Last reported revenues were less than £300,000. Market cap. is £53m. Yes it really is laugh out loud silly since the business model hasn't even been proven. All RNS's regarding so-called deals give absolutely no guide to future revenues. Why? The usual b*llsh*t about confidentially. It's funny how the revenue generating, profitable, cash generative companies don't seem to have a problem with this issue isn't it?
So are things on the up for OptiBiotix? Well given that the interim period ended in May and they've since had an AGM then surely investors have been given a guide to revenues, cash on the balance sheet, cash outflow, future projections etc.
No they haven't. Why might that be do you think? I'll leave it to your imagination.
Did anyone shout pathetic revenues and cash-call AHOY captain? I couldn't possibly comment.
Premiatha Health. Even worse. Revenues to be reported this year just £3.1m. Market cap. £32m. Burning cash like it's going out of fashion and litigation hanging over it like the sword of damocles.
Again it's just laugh out loud silly.
Have a look at BST and CPT as well. Is there a pattern emerging? ;)
I don't do advice on the blog, but personally I'd avoid companies like this like the plague.
Another partnership to be aware of is the other combination of a bloke called Nigel Wray and Winnifrith.
Take a look at the R4E advfn thread. Despite numerous highly dilutive fund raisings, R4E still has far too much debt and unbelievably can't guarantee that it won't breach it's banking covenants again:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=30989538
Oh dear! Doesn't bode well does it.
Just for clarity, I offer no advice and all the views and opinions expressed are entirely imo.
No comments:
Post a Comment