Today CPP (CPP) issued a shareholder update which a time of writing saw its share price crater by 46%. The reason for the drop isn’t due to a lack of cash as the extract from the RNS below indicates.
If you want me to analyse a stock for you just drop me a line at sqmir@hotmail.com - Today I look at shares of CPP Group, Scotgold Resources, Sierra Rutile and offer some share price targets.
CPP (LSE:CPP) shares have roller-coastered spectacularly since founder and 58% shareholder, Sir Hamish Ogston, walked away from his 1p per share bid back in June. They have been from 2.5p to 42p and now sit at 16p valuing the company at £27 million. The whole episode demonstrates the dangers of being short a bust company which is given a stay of execution.
Fully listed CPP Group (CPP) shares have rocketed to 16.5p in what infamous short seller Evil Knievil describes as “the biggest bear squeeze I have ever seen”. Evil, aka Simon Cawkwell, remains short and expects the shares to collapse, but admits that they could easily go higher short term.
Tom Winnifrith referred to “some clown” having bought shares in CPP Group on Friday. As UKIP leader and erstwhile folk hero Nigel Farage would say, ”Send in the clowns.”
Some clown bought a stack of shares in CPP (CPP) on Friday sending the shares soaring.
The slam dunk short that is AIM listed financial services group CPP (CPP) just got better.
Earlier this week Zak Mir indicated that if CPP (CPP) shares closed at above 7.35p they would go to 12p and that the shares were a good risk reward buy at 7p – see here. There is more chance of the Pope opening a strip joint in the Vatican than of this happening.
Given the history of identity theft group CPP Group (CPP) in the recent past it would be perfectly understandable if not everyone regarded the current technical set up here as a steal.
There are five things that you need to know about AIM listed AIM Listed CPP Group (CPP). None of them should make you wish to do anything other than sell the shares as soon as possible. Firstly the company has just been hit with a £10 million fine by the FSA, secondly its balance sheet is now severely holes, thirdly earnings visibility is nil and finally a takeover approach it says it has received will almost certainly come to nothing.
