Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Paragon Diamonds – bizarre RNS: is it a buyback or a cashflow problem?

By Nigel Somerville, The Deputy Sheriff of AIM

18 June 2015 02:53

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This morning Paragon Diamonds (PRG) released a very odd RNS indeed. On the face of it, mooting a share buyback programme would send a strong signal to the market that the board either thinks the share price is too low, or that the company has more cash than the board knows what to do with. But for a company still in a capital intensive phase this is… unusual…. to say the least.

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Comments

JustCurious

18 June 2015, 03:09

I had similar thoughts.

I think you should add Obtala Resources to the tags associated with this article, given their ~10% holding in Paragon.
DUCK AND DIVE

18 June 2015, 03:21

I can see the next RNS now: Paragon announces £5m placing to pay maiden dividend or keep the lights on.
pink53

18 June 2015, 04:09

Follow the money! Who lent the money at such an attractive interest rate and got the options at such a decent price?
nigel somerville

18 June 2015, 05:37

D&D you’ve missed your PR calling, LOL! Brilliant comment…
MArtin Ashworth

18 June 2015, 07:40

I was at a presentation on this Company by Mr Manduca recently. It was one of the most bizarre affairs that I have ever been to. He virtually said “the world of FIAT money is going to end very soon & the ONLY answer to this , is to buy investment grade diamonds” – which we hope to mine. Personally , I would rather have my money in FT250 Listed Petra Diamonds, which at least has five large mines already fully funded & in production in South Africa.
wildrides

18 June 2015, 14:03

Look what happened to the last bloke to try and tell the market it had valued his company shares to low ……….. Chap called Rob Terry .

Paragon is being renamed next week I hear ……… to Enigma Diamonds .

P/s what the hell is FIAT money ……….. money left over from selling a million Pandas ?