I have today written to AIM to express my 'disquiet' (being very circumspect here). I hope others may also consider writing to AIM or FCA on this one. Here is the salient text of my email to AIM.
Please note that my shareholding has rather reduced in value over the morning!
I am a private investor and appreciate that you may not be able to help me. I seek to manage my own SIPP via an execution-only platform (Interactive Investor).
This firm (ITQ) seem to have been up to some shenanigans (technical term for possibly dodgy dealings) lately. Yesterday after 4.00 pm they announced that on 10/8/17 they gave notice to Panmure Gordon of termination with the hope of securing a replacement agent. Now they say such has not been secured.
Previously they made an offer of 42 pence which it seems most private investors rejected upon advice of independent director, David Higgins, such information disseminated via Panmure.
Other management had signalled an intention to delist from AIM but needed 75%. They are a long way short of this, so this 'sacking' process seems to be a manoeuvre to achieve delisting anyway and simply reduce share price to pick up shares from panicked private investors.
This seems manipulative and rather shabby practice. Ought they not to have advised AIM of termination of agent so that price reflected that significant information on 10/8/17? Can anything be done here?
I currently own shares to the value of around £8,500 on today's price.
Thank you for taking time to consider this matter,
Look at the brokers' forecast for 2018 (per digital look.com):
Pre-Tax Profit £4.7M (highest on record)
PE Ratio 4.6
EPS Growth from 2017 28%
That's based on SP of 44.3p.
I reckon they should be offering a PE of at least 10 x 2018 Forecast EPS, which would be 96.3p.
Even 10 x 2017 EPS forecast would be 10 x 7.53p which would be 75.3p, which would be 80% higher than the current offer.
Why do you think it's all over , I don't know what percentage they need but i'm sure its a lot more than 50% and the shares are still trading over the offer price . If anybody knows the percentage needed please chip in . I certainly won't be voting to accept!
I use REFS where I have set up various searches. They are quite tough criteria's so don't find that many shares which is ok for me. I've based them on Jim Slater's Zulu Principle and tweaked them over the years. Takes me a few minutes a day. Try their free trial
I've not used Stockopedia but many do and I expect its similar to REFS. You need to use one of them. They both are the same principle. They have a database you enter some parameters and it shows the results.
I also use ADVFN and go into the News section and I look for the shares that have had news that day and gone up the most. They have a great tool where you enter and save certain search words when you open a RNS it highlights those words. For example I have saved the word "ahead" and the RNS has the phrase "ahead of expectations" it highlights the word "ahead". I've done very well recently with buying shares that have come out with trading statements that saying that they are trading ahead of market expectations. On the day they will have increased 10%-20% but that does not put me off and they have continued to do well.
I read Paul Scott's daily small cap report.
I'd say I spend 2 hours a day researching. If I'm in between work contracts then I spend more.
The more you research the better you become.
I use similar criteria and bought these in December. How do you find your shares to research further? I use tables on advfn then check PEG etc on digitallook. Takes ages! I'm thinking about trying out Stockopedia for a month - any views?
Positive 1 Year Relative Strength - Yes just
Positive 1 Month Relative Strength Yes
ROCE of 20% - Yes 45%
Profit Margin of over 7.5% - No 3%
Cashflow Per Share greater than EPS around 1.3 - Yes 1.67
Low Gearing Resonable at 26%
Quick Ratio over 1 - Yes 1.1
Director Share holding >10% - Yes 35%
Dividend Yield (a nice to have) forecast Yes over 3.5%
Another Buy Signal for me is the Financial Director buying in March
David Bygrave, Financial Director, bought 24,750 shares in the company on the 10th March 2016 at a price of 80.00p. The Director now holds 37,250 shares.
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