Who's next to be Geong, Geong, Gone? - China AIM 'Filthy Forty' performance update. So far 15 down and 2 on the way out. Only 23 left standing. The average loss since IPO is a mere 46.4%. Strip out the two best performerers and two worst and the average loss is 82.5%. Shocking. So who is next for the high jump?
Over at Paternoster Square, above the headquarters of the London Stock Exchange the black flag was again raised this morning as Geong (GNG) took its final walk to the AIM casino execution chamber and was despatched. I’ve been wanting to say this for three years: “Geong, Geong…Gone!” This is the 15th AIM casino ShareProphets China Filthy Forty stock to meet its maker since the Index was started on June 1 2014. Who’s next?
In what is clearly a sign that AIM-China Filthy Forty play Geong (GNG) is headed from its cell on Death Row to the execution chamber, it has been announced that it has been deleted from the FTSE AIM All-Share Index effective Friday 30 October.
Oh dear. It could not get its accounts out on tme - given that they were total fiction that would have been hard - and at 4.05 PM today, shares in Geong (GNG) were suspended as Nomad and broker Finncap quit with immediate effect. I've wanted to use the phrase Geong, geong gone! in a headline for years and now I can. If no Nomad signs up for reputational hara-kiri within a month Geong will be booted off AIM. Pro tem it goes onto the casino death row. Boy the cells there are getting crowded.
As flagged up at the weekend HERE there were fourteen AIM-China stocks still to report by the deadline of tomorrow (Weds). It is now Tuesday and we have had just three so far- China New Energy (CNEL), GTS Chemical (GTS) and Asia Ceramics (ACHP). More on those to follow. But already we have had another one join Sino-Casino Death Row in the form of Camkids (CAMK) (see HERE).
Fourteen sets of Filthy Forty numbers to come in by Wednesday to avoid suspension, but AIM-China play Geong (GNG) still, from this morning’s RNS, seems to be wrangling with its auditors over its FY numbers to the end of March this year. There is just so much to go wrong here: will a convertible debt of £1 million get rolled over for another year as hoped? Will Geong get passed as a going concern? Will it get audit sign-off? Will Geong get the numbers out? And then there are the write-offs. It looks grim. Bag of Walkers, anyone?
It was a storming week last week on the ShareProphets AIM-China Filthy Forty. But there is more to come, for Wednesday sees the end of the month and the reporting deadline for any company with a half year to the end of June, or a full year to the end of March. So what is there to look forward to?
Out of the AIM-China companies we have identified as the ShareProphets Filthy Forty, ten have already left the Casino. The rest are starting to form an orderly queue, with three more exits on the way. Two are the result of Nomad resignations, but Jersey-registered Geong International Limited (GNG) seems to have opted for the derisory take-over offer method. Having listed all the way back in June 2006 at 30p a share, and never having paid a dividend, Geong announced on Monday that it was in talks regarding an all-cash 5p a share offer.
I have been flagging up what a joke the accounts of AIM listed Chinese POS Geong International (GNG) are for more than two years but amid the Naibu (NBU) excitement I overlooked the fact that Geong served up its own dogs dinner of a statement on Friday. Its accruals policy makes that of Quenron look conservative.
