Good evening!

I previously put up a holding page, as I overslept (my stockbroker took me out for beers last night, and that never ends well), and then had to dash off for an investor lunch in Reading, which was very interesting.

So, my apologies for today's report being late.

If you haven't already seen it, this is a very interesting article by Ed about StockRanks, in light of a few recent profit warnings, and investor psychology.

If you have any questions for Lord Lee - you can ask them here as Ben will be travelling to the House of Lords to interview Lord Lee.


Cdialogues (LON:CDOG)

Share price: 77.5p (down 55% today)
No, shares: 6.2m
Market cap: £4.8m

Profit warning - the company (which appears to be a Greek mobile network marketing company) blames poor performance, and delays in new business, for a profit warning which says;

...the Board now believes that revenue for the year ending 31 December 2015 will be below current market expectations, with EBITDA for 2015 being materially below current market expectations.

As part of its normal budgeting process, the Board is reviewing its internal forecasts for the year ending 31 December 2016.  Whilst this budgeting process has not yet been finalised, it is likely that these forecasts will be lower than current market expectations.

This is not particularly surprising given that there were clear warning signs that things were not going well, with a previous update on 18 Sep 2015, which I reported on here, expressing my doubts about this company. Amazingly the shares have dropped 73% since then - just 2 months ago, which reinforces the general point that it's often best to sell immediately on the first sign of trouble.

The company claims to have net cash, which now represents a significant proportion of its own market cap, so if you think that some shareholder value might arise from this cash, then it might be worth considering for people prepared to take large risks!

For me, it's Greek, and on AIM, so that makes it an automatic bargepole. Why waste any time on looking at things like this, when they nearly all go wrong sooner or later? Although note that, unusually, this one does pay divis.

The Group maintains a strong balance sheet with net cash as of 31 October 2015 above…

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