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Real-Time news about Addworth (London Stock Exchange): 0 recent articles
|malkie: With ADW you need to dig deep to find out anything, they hide their light under a bushel.
I particularly like NCI Vehicle rescue - share price has really performed well and loads of opportunities to take advantage of the syneregies created by the the Captive Insurer.
watch & wait...|
|argy2: Interesting deal announced today bringing together two of the markets biggest 'insider dealers' (allegedly). Should bode well for the share price....5p sooner rather than later? No wonder Mark Watson-Mitchell bought a lump very recently...he must have known this would boost the price.|
|prokartace: I still think there is scope for upward movement in this price. The company has topped up its holding in Myhome and the price has soared to 37.25p . Surely the increase in asset value should reflect in the share price of Addworth.
|argy2: No....but assume still well below share price given the price founders paid when it came to the market. Also difficult to guage given the problem getting market prices of many of their holdings if they needed to sell.|
|prokartace: I'm not quite sure what I'm missing. ADW holds 9mil shares of E-Retail which has jumped from 3p to 6.875p in 3 days after results. Why is this not reflected in ADW share price. Answers on a postcard.
|argy2: One way to stop the Yellowcake share price collapsing even further!
Wonder who the seller was?|
|drbeat: published by winny
There are cash shells and there are spivvy mining stocks and then there are cash shells looking to be spivvy mining stocks and no matter what the sentiment in the market, the directors leading these teams, don't seem to get the message. Yellowcake is a perfect example of another overvalued 'OFEX listed Investment Vehicle' aiming to be a mining focussed business. The company opened its fundraising last week, hoping to bring in £500,000 from private investors and combined with its existing cash balances of £237,000 will be valued at nearly a 100% premium at £1.4 million. We have to admit, the business has all the makings of a company that we would avoid. A bunch of directors with little or no experience in mining for uranium, a board with 'active investors', and the branding of an 'investment vehicle'.
The company has set out on a brave mission to offer private investors a stake in the global uranium industry. Uranium is a relatively eco-friendly fuel as emissions from combustion of Uranium in a nuclear energy factory contain close to zero pollutants. The markets have impacted the price of the metal pushing it up by nearly 43% in 2004. Future indicators showed a 61% price increase and International Atomic Agency is forecasting a 47% increase in production rates by 2020. Yellowcake itself will invest in leading uranium miners, in companies holding proven reserves of Uranium and in Uranium exploration companies (OFEX listed Agricola a possibility, given that it might have signed a groundbreaking agreement?). The directors claim to have studied the sector fairly closely and reviewed a number of projects. Of course, their experience in accounting, financial management and acquisitions might help with evaluating prospective mining investments. But are they vastly experienced in the specialist world of running Uranium, or even mining, companies? Do they have the true depths of expertise and breadth of contacts of, say, Malcolm Burne at Golden Prospect? Er...no.
The team is led by an ex-journalist and a share tipster. Mark Watson Mitchell, better known for his involvement in Addworth and Myhomes on Ofex is to serve as non-exec Chairman. Robert Wallace has worked with the AIM and OFEX newsletter as journalist covering mining stocks and is looking to take on the position of Chief Executive. Finance Director, Robert Abeysinhe is on the board of Addworth as FD and has worked previously with Beaufort International Group. Albert Collins, non-exec Director has worked as a fund manager with Guardian Royal Exchange's Trustee Division.
A closer look at MWM's last intelligent venture, a cash shell investing in growth businesses on AIM, seems to have delivered more than a few others that slipped through the cash shells net. But having said that, the share price has collapsed from its placing price at 6.75p to just 3p (despite a poorly researched and utterly risible ramp piece today in the rag that is the Daily Mail). And even at just over £2 million, the shares are overvalued as Addworth's equity portfolio cannot be worth more than half its market cap. There is enough reason to believe that the fundraising will be marketed well to its share of supporters and it is more than likely that Yellowcake will pick up a stake in a couple of uranium juniors, but why we should pay a 100% premium for an amateurish play on the uranium price, we cannot understand. Golden Prospect on AIM provides a better exposure to the metal and it trades at a discount to NAV (if one strips out the value of its fee generating businesses). At 2p, the stock is not worth £1.4m by any stretch of the imagination. This is an awful investment promoted by gentlemen best described as opportunist. Avoid.
I saw winny has bought Bishopsgate PR and is ramping Henderson Morley on iii?|
1...Says volumes about share price and its likely movement if you can buy near the bid.
2....You must be looking sub 1p then imho|
Given the fall since they ridiculed the share price and management it certainly seems to be going their way though.Only time will tell who is right them or those guys who got in at 5p or more.|
|paulmasterson1: Oh dear .... I was reading my e-mail, and got this today, came in just after 12:00 .... A BIG slagging off ....
Addworth Plc - It Just Does not Stack Up
Says Monisha Varadan of Allnewissues.com
Every working day of the week I look at one new issue on our specialist website www.Allnewissues.com and once a month we publish our hot new issue tip of the month. The next hot tip will arrive on Sunday. You can make a killing backing the right new issue but most new issues at present are low quality. At least twice a week I find myself writing about cash shells the value of which simply cannot be justified. The one described below is not especially overvalued and I know, like and respect its chairman, my former colleague the share tipster Mark Watson-Mitchell. But with the greatest of respect to MWM the valuation just does not stack up and the prospectus is not something that impressed me. My job is as much to steer readers away from the bad new issues as to point them towards the winners. This is what we think of Addworth but the same arguments apply to dozens of recent AIM new issues.
Background: Another grotesquely overvalued cash shell debuted on AIM on Thursday. This is not much different from the others that have listed in the recent past, Addworth Plc raised 750,000 pounds before expenses at 5p and claims to act as an 'active capital investor' in underdeveloped, early stage companies. The enlarged share capital, at Friday's closing price of 6.5p, is valued at 3.705 million. It is not worth that by any stretch of the imagination.
Operations: The focus of the cash shell is to 'grow capital value and generate fee income' by investing in newly quoted, sector focussed companies. There seem to be two main functions of the group - participate as an early stage investor at the pre-IPO stage and develop businesses to a point where the companies are ready to list and to act as an investor in smaller quoted companies. Chairman Mark Watson-Mitchell ( a former employee of t1ps.com Ltd which owns this website), hopes to provide access to the pre-IPO market through Addworth, allowing private investors to buy stakes in these potentially high growth companies. He also confirmed that the plan on listing these investments is to provide a vehicle for reversing in new companies. Investments will be focussed on the lower end of the AIM market and OFEX. The companies will operate in the service, consumer products or software sectors.
Business Development: With a net 650,000 pounds in the bank, the board claims to have extensive knowledge and experience when it comes to stock selection. We don't doubt that. The resources, or shareholders funds will be spread across a number of smaller propositions giving it a wide spread of 'active investments'. 3 AIM quoted companies and 2 OFEX companies have been shortlisted. And in its role as fund manager, the company has stated that it can invest in the quoted sector, without any prior due diligence conducted on the investments. It goes without saying that the company plans to carry out further fundraisings on spotting suitable opportunities to invest in.
Management: Share tipster and 'active investor' Mark Watson - Mitchell owns 25.6% of the company and small cap mining supporter (and also an active investor) Bruce Rowan holds 14.9% of the company. Mark Watson Mitchell will head the company as Executive Chairman, he currently owns SQC Research which writes research reports on behalf of quoted companies and carries out investor relations functions. Robin Abeyesinhe, FD and Company Secretary has worked as company secretary for Beaufort International. Melissa Gilmore worked as a research analyst at Axis International and joins the board as an Executive Director.
Investment Conclusion: Given our opinion on overvalued cash shells in the past, its easy to see why we cannot justify the investment case for Addworth. At 3.7 million pounds, the company trades at a 470% premium to its net assets. A fair amount of hope has been built into that valuation (an additional 30% increase on first day of listing) and has to be balanced against the fact that most of the investments will be fairly illiquid as Addworth is focussing on the lower end of the market. We cannot understand why an investor would choose to buy Addworth equity given that its stock selection process (for quoted investments) will be carried out without full due diligence. Are the team at this company really talented enough to spot investments which generate the sort of returns necessary to justify the market valuation? Even Warren Buffet only makes 23% a year. We know that these are talented guys but are they 20 times as talented as Buffet? The valuation is just farcical.
We would also like one point not made clear in the prospectus clarified in the public arena. MWM is an active trader of AIM shares and Bruce Rowan an active investor in AIM (and pre AIM companies). As directors of this company we would expect that what they view as the best investment opportunities are presented to Addworth allowing it to invest before anyone else. We would view that as a core responsibility of directors to shareholders. A statement that this will indeed be the case would be of some comfort. But even should such a statement arrive we do not believe that even a team as talented as this can deliver the sort of increases in Net Asset Value which will go anywhere near justifying the current share price. Most investment companies trade at a modest discount to Net Assets. A 470% premium to NAV values hope on an unjustifiably high multiple which cannot be, in any circumstances, justified.
Share price: 6 - 7p
Monisha Varadan edits the website dedicated to giving an impartial assessment of new issues - www.Allnewissues.com. It costs just 19.99 pounds a year to access the site (9.99 pounds if you are already a member of the top financial website www.t1ps.com) and Monisha serves up one new issue profile per working day plus a monthly newsletter with details of all new issues in the pipeline plus her hot tip on the month. To catch Sunday's hot tip, click here.|
Addworth share price data is direct from the London Stock Exchange