Friday, 23 October 2015

DocsLaymanChatter XLIII

This week we talk more about the markets events, much of it has been filled with the excitement of the CEB resources podcast with Justin Waite of sharepickers in which Dave talked about his future plans within the listing remit, this has been questioned by some market commentators citing '' crossing the line '' having met Dave I'm fully aware just how professional he is in everything he does, more so how annoyed he would feel at the thought crossing the line as he's an extremely professional individual (I say let the powers at be decide) however the story looks pretty good for those invested.

On the flip side we see Sefton resources hit the rocks, as sad as it is for investors there was no shortage of warnings. I recall being interviewed on the ADVFN podcast (ironically) advising that the smart money would move from SER into CEB and low and behold they both suspend on the same day. SER in utter failure and CEB pending an update on the 26th October 2015. SER lost 98% of it's value whilst CEB gained 100%+. Regardless of the propaganda pushed out by the axis of evil the testament of time always proves those that are fit to operate at this level.

Only the strong survive, and knowing the game is just as essential....

I shan't revel in the SER demise as I genuinely hope investors can recover from this but advise investors learn from this before jumping in feet first in the future.

Today's tweet of the day came from Bang bang Levi...

@Chairman_Nick Where's the sefton Resources money gone you thieving bastard! £1m in cash July 31st!! Where's it gone?

Barron Wuffet then went on to reveal his Intelectual hand...

''Hope you have legal insurance YOU BASTARDS when i find who has stolen the money ie £700,000 in 90 days i will be after YOU ''

Clearly the boys have learnt a hard lesson in Karma, I just hope that they can find a place in which they can find positive expectancy moving forward.

At nobody is watching o'clock ADVFN released there results '' Ouch!!! '' what a mess, they fought off an approach to requisition the company via a legal battle (Irony here too) which left the board exasperated but just about still in control. The balance sheets look like a train wreck which may help explain why the Advfn board of directors agreed to join the Sefton hot seat, again messy but cash heavy (ut oh sorry the money has gone) and in typical Laurel and Hardy fashion you now have a situation where Hodges and Chambers are involved in one company that's today suspended, damaged and with dwindling cash, whilst clinging onto Advfn who could if they don't cut costs quickly could find itself trading insolvent.

The hot spot in the results is other administrative expenses of £8.755m from revenue£9.2m Losses increasing from £454,000 (2014) to £1.56m (2015). clearly the company makes plenty of money however the distribution of that is not keeping shareholders in a healthy place with an ever expanding waistline. Advfn shares closed down on it's 5yr low of 65p, which I anticipate will look worse come Monday morning when the markets reopen.

I suggest that the focus should be on regaining what was once a potentially strong and prosperous business model instead of cavorting with Barron Wuffet and Bang bang Levi.

Keep your peckers up


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