Good afternoon!

Let's start with a couple of Indian companies listed on AIM (brace yourselves!)

DQ Entertainment (LON:DQE)

Share price: 1.75p (down 60% today)
No. shares: 56.3m
Market cap: £1.0m

Update re General Meeting & Resignation of NOMAD - today's update is a catalogue of woes. It looks extremely likely that this joke share will probably de-list from AIM fairly soon. The usual way this happens these days is by NOMAD resignation. Allenby Capital has apparently served notice to resign on 22 Feb 2016. If no replacement NOMAD is found, then the shares will de-list on 23 Feb 2016.

There are further complications, in that Allenby has not been able to complete satisfactory due diligence on new Director appointments. Also, bond holders (who are owed $35m) would be able to claim immediate repayment (which the company says it is unable to do) in the event of the shares delisting, as delisting would constitute a default event.

To cap it all, legal action is being taken against the company to challenge the validity of the decisions taken at its last AGM. You couldn't make it up!

My opinion - this share has been covered in red flags since day 1, so why anyone in their right mind would hold shares in it, one can only guess at.

As usual, the big tell is Debtors. Whenever you see excessive debtors (which I would class as over a quarter of annual revenues from the income statement, as a general rule of thumb), then it means the company has probably inflated sales & profits, by booking revenues that won't actually be collected in as cash.

Over the past 3 years, I've written here about DQE a total of 9 times, and on 31 May 2013, my view couldn't have been more emphatic, "Debtors has now shot up to more than the year's turnover, so forget it - that's not a proper business!" - See more at: http://www.stockopedia.com/content/small-cap-repor..."

There's really no excuse for getting caught in such obvious joke shares. Anyone doing so isn't investing at all, they're just wildly, cluelessly, punting. The city has floated a wide array of rubbish shares on AIM which are designed to part you from your money, but it's really terribly easy to spot, and avoid them.

Above all, remember my golden rule of investing on AIM - if the company is essentially an overseas business,…

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