Pre 8 a.m. comments

Good morning! I've only just been told it's a Bank Holiday on Monday, which is a nuisance. I don't enjoy Bank Holidays, but at least it will give an opportunity to catch up with backlogs of research & filing.

It's a very quiet morning today, with little to report on. Another Director has resigned at Snoozebox Holdings (LON:ZZZ) which makes me nervous. I don't know what's going on behind the scenes with their refinancing, but it wouldn't surprise me if it goes bust, or ends up in a Placing that heavily dilutes existing holders - maybe at 10p (or less?). It doesn't make any sense to hold the shares until they have sorted out the refinancing, and have a clear recovery strategy. Maybe it was a good idea, but not commercially viable? We shall see.

 

Similar story with 2Ergo (LON:RGO) - they slipped out an announcement on Friday saying that one refinancing deal had fallen through. Maybe shareholder Nigel Wray will rescue it, but on what terms? Again, it doesn't make sense to hold until it's got proper funding, and it might de-List. I don't like micro caps below £10m market cap - they are too accident prone, and the risk of a de-Listing hangs over you all the time.

 

Inland Homes (LON:INL) announces a Placing at 27p, only a modest discount to the market price. I noticed that there was a sudden, unexplained softening of the share price the other day, after a solid trading statement was issued, and wondered why. Now we know - it was probably someone in the know banking an illicit 10% profit ahead of the Placing, through a bit of insider dealing, which of course is illegal, but as usual nothing will happen.

It is good to see that Inland's ridiculously over-paid FD is recycling some of his absurdly high salary into the Placing - buying 148,100 shares for his pension fund.

 

FTSE 100 futures indicate that the market is set to open up slightly, 10 points. Good to see yesterday's correction triggered no panic selling in small caps, I was amazed at how light the volume was in the stocks I follow yesterday, which seems to show that the market still…

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