What will now happen is present shareholders will start downsizing to invest elsewhere. There are so many stocks out there that are going to make investors far greater returns than sitting in AST will do and this game is about making money. If you are on AIM, in general, you are NOT a long term investor, you cannot afford to be.
From here on in, shareholders will reduce, day traders will move in and I believe the SP will struggle for some time going forward.
I reduced my holding here by approximately 350k today when the SP lifted prior to Malcyy's interview and Iv'e injected that and other funds into MSG and ONL. It will be interesting to see what the returns on these two will be by the new year compared to Ascent Resources.
I think Colin's a decent guy. He has his heart in the right place. What he doesn't have is a clue how to manage Ascent with a view to building the SP up in line with other companies on AIM.
Good luck to all invested in AST, you wont lose money in the long term but I think it will be a shaky journey for a while now.
Now, just why did Colin do this placing and why did he do it when he did?
Colin tells his shareholders the company needed some cash to tie them over until the INA deal was done and obviously there must have been no cash in the kitty because the ludicrously low value deal was done just before the deal was signed! Ooooh, what a surprise that must have been getting 1.5 million quid in and then getting the contract signed! Yes folks, the shares were so cheap and in demand, the company issued an extra £500k's worth!
What was TOTALLY wrong here was that he should have issued an RNS after the INA deal, offering shareholders the opportunity to take part in a fundraising when the SP had seen the benefit of the long awaited deal. The share price on that announcement would have easily breached 3p, allowing loyal, long term shareholders the ability to take a little profit and thus be able to benefit from buying some discounted shares. Instead they were royally shafted by being locked in whilst traders and brokers sucked them up, offloading them 24 hours later at a tidy profit. This was a scandalous move by the management of Ascent, one that has led to an almost daily fall in the SP to levels lower than the ludicrous placing price, levels lower than when there was NO gas being flowed.
And where are shareholders left now? They are left waiting at the station with the nearest train the other side of the country and in no hurry to collect the passengers!
Short of a takeover offer, the IPPC which is the only significant event left to mature will cause a spike and allow all the buyers at these low prices to take their profit and wipe away any chance, yet again, for LOYAL long term holders to take a little profit. Rinse and repeat, rinse and repeat, the share price knocked back at every piece of news.
The management have clearly messed up big style, they are running the company FOR the shareholders and have instead rewarded day traders!
Well done Colin an such an ASTute move, really hope you don't get indigestion from your Bushmills!
Meanwhile, spare a thought for all those who have patiently waited for you to come good who will be selling some shares at a loss to pay for their turkey!
Now, I am sure, in fact I am waiting, to see the Dan Levi haters and my own personal haters start their forum rants, but of course, none of them will be Sefton investors, they will just be doing their keyboard warrior thing. They will not accept that any effort to restore credibility and financial stability is better than no effort at all, that without this move, the cash would just dwindle. They will only focus on the fact Dan Levi did some time and that should remain with him for life! Fact is, not a lot of people know just what Dan has done with his life and what he has accomplished that doesn't get publicised, most would surely be amazed!
But, none of this matters, the fact is, Dan, myself and the rest of the directors are in and about to get to work.
Now, PCG Entertainment is more of a high risk investment due to previous failures, fraud, ex-employee legal actions, not the sort of company one would initially consider throwing their cash at, but this is one where the management interest comes in. Richard Poulden, the CEO who has taken the reigns is NOT recognised for failure. He has the contacts and the experience to turn this company around and when management don't take wages, but shares in lieu, then that in itself suggests an air of confidence in rebuilding shareholder value. Fully funded and looking for deals in a market where the management have experience, PCGE is, in my opinion, one for a major recovery and possible imminent multibag.
Summary of BRR MEDIA Interview with Coin Hutchinson, CEO Ascent Resources, 24/04/2017
Colin today confirmed the debt on the balance sheet was SIGNIFICANTLY reduced in the 2016/17 period, half the debt disappearing during 2016 with administrative costs further reduced !
He was on site just over a week ago and was delighted to see the gas being turned on and going on sale.
There is a workforce on the ground this week at PG11 who will be moving the equipment ready to re-complete sometime in May and then this will be followed by gas sales to INA.
With regards to the assets, Colin stated ' t he assets are 'hugely significant ' and the independently assessed gas in place will supply Slovenia for a considerable time."
PG10 and PG11 have been proven to flow at commercial rates and the company are looking at bringing on new wells, re-habilitating old wells and boosting production to a stable level, thereby generating s ignificant cash revenues .
OK, so Hendersons are dropping their Convertible Loan Notes into the market and it seems the company is being shorted, but firstly, what's new in this game and secondly, has the company reported anything that will make it's shares worthless?
No, of course not and I am aghAST al all the comments on the bulletin boards where 'supposed' investors are saying they are selling out. I mean, wait 10 years for the company to announce it is now producing and selling gas, the price to drop to pre-announcement levels and then move on???
Ascent Resources is producing gas for a COUNTRY! Not the local villagers and it is future major! Well, that's if it's not sold off, which again, would see a nice return for investors.
Why on earth people cannot exercise a little patience for what is pretty much an obvious outcome I can't comprehend. Well, I can, they are in it for a quick kill and it ain't happening quick enough!