Good morning!

I'm interviewing the CEO of Zytronic (LON:ZYT) this afternoon, am looking forward to that. I've only had one reader question submitted so far, so could do with a couple more. Therefore if you wish me to ask the CEO of Zytronic anything specific, please submit your question using this simple form, and if it comes in before 2:30pm today, I should be able to ask it (the interview starts at 3pm)


Concha (LON:CHA)

Share price: 0.75p (down 71% today)
No. shares: 1,552.7m
Market cap: £11.6m

Termination of investment discussions - let me translate this as: the big ramp finally unravels. Concha is just a cash shell, which only had £5.7m in it when I last looked at it here on 31 Mar 2015. I warned readers that the £92.5m market cap (once options were included, or £78.8m without, at 5.33p per share) was completely ludicrous. When I find over-priced junk, I don't hold back, because people need to be warned, and my concluding comments on 31 Mar 2015 were:

"It will be fascinating to see how this pans out. Anyone buying the shares is crazy, as it's nothing more than a wild & grotesquely over-priced speculation at the moment. Let's see if anything of substance does appear, to justify this absurd valuation. It's going on my bargepole list for now though. - See more at: http://www.stockopedia.com/content/small-cap-value..."

The company had said it had found an exciting but unspecified investment opportunity, but that has now fizzled out. So the valuation now resets back to what it should be for a cash shell, which is at par with cash. So the shares really need to fall further, to about half the current price to get there.

It was blindingly obvious that this share would collapse sooner or later - you can't defy gravity forever, by valuing a cash shell at £70-85m more than its cash pile, justified simply by vague assurances that an exciting investment is going to be made with the £5.7m cash.

It's just a pity that I wasn't able to get a short on, but never mind. Frankly, it's just embarrassing that silly ramps of this nature keep happening on AIM. Part of the problem in my view, is that AIM has no minimum free float. Therefore it is very easy for…

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