On 22 September I published an article showing that Petra Diamonds (PDL) subsidiary Petra Diamonds UK Treasury Limited had been served with a winding up petition by HMRC – in fact it had been served on 25 August as you can see demonstrated HERE. That's a SCOOP! Today Petra fessed in an RNS but it misleads the poor saps who own its shares. Management are shown as scumbags.
It is not Petra Diamonds PLC (PDL) that faces the petition. It is a zero for reasons I have explained many times but most recently HERE. However, there is a winding up petition made by HMRC against a subsidiary, Petra Diamonds (UK) Treasury Limited.
The first time I wrote a bearish piece on Petra Diamonds (PDL) was when it joined AIM back in 1997 So 29 years later, I remain a bear and as we enter the final stretch I finally see victory in sight. The reason why Petra will go bust today is NOT the reason that I was a bear back in 1997.
Yesterday I explained why folks including the celebrated small state low tax scouse campaigner Mr Ken Dodd, sorry I meant to say Evil Banksta, were still short of Petra Diamonds (PDL) at c6p, a market cap of just under £20 million. This is partly a company specific story but there is a bigger macro picture that will ensure this is a slam dunk zero. You can bet the ranch shorting this company it has 0p written all over it.
I have been a perma bear of Petra Diamonds (PDL and with the shares languishing at 6.45p, a market cap of £21 million, I am vindicated. But the shares are still a short the target is price is 0p. I am not alone in that view. I asked Liverpool’s greatest numbers man since his fellow small state low tax enthusiast Mr Ken Dodd, Evil Banksta if he was still short.
As myself and Evil Banksta, Liverpool’s Greatest Numbers Man and advocate for a low tax state since Ken Dodd, have often pointed out, shares in drowning in debt Petra Diamonds (PFL) are going to zero. Our most recent warning of many was HERE. Today comes an admission of how dire things are.
I have penned more bearish articles on Petra Diamonds (PDL) over the years than I have had inappropriate thoughts about Cheryl Cole. Okay that is not true. But I’ve penned a good many. And in recent months I have urged you to short as never before as the end game approaches. Today the company took another big step on the pathway to wipeout but it is not too late to short.
This is now officially free money if you short Petra Diamonds (PDL) at 12.8p, a market cap of forty million quid. The equity is worth 0p which will vindicate my prior warnings of this such as this on just a few weeks ago. The news from South Africa is grim
Liverpool’s greatest numbers man since his fellow believer in a low tax state, Mr Ken Dodd, seems active on the short tack once again. Yesterday, it was Victoria (VCP) as I discussed HERE. Now he drops me a note on Petra Diamonds (PDL) which is eminently shortable at 15p, a market cap of fifty million quid. The most honest Scouse businessman since Derek Hatton has a target price of zero. He opines:
On May 22 Petra Diamonds (PDL) posed a full operational update which included the line “We believe the steps we have taken over the past 12 months position Petra well for a successful refinancing. We will now look to commence engagements with our lenders on the refinancing of our debt maturing in early 2026.” The shares were then 21p. They are today 11p and falling rapidly.
Bloomberg is reporting that Petra Diamonds (PDL) is meeting with creditors next week as it grappled with a quite unsustainable debt mountain plus other bills. Even Stevie Wonder can see that the only way out is a debt for equity swap that will see shareholders lose almost everything. At 22.5p this is still a compelling short and we perma bears could be celebrating with ouzo very soon indeed.
Yesterday shares in Petra Diamonds (PDL) clawed back a few of Monday’s steep losses to close at c26p, a £50 million market cap. But on the bond markets it was a very different tale as you can see below. And that was telling as yesterday Petra was presenting to its bond holders and they clearly did not like what they were told.
