From £6.99 per month
ShareProphets
The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

MINDING THE LSE’S BUSINESS

Join for as low as £6.99 per month

With ShareProphets’ membership, you receive:

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 10 year archive

• ShareProphets Daily Newsletter

musicMagpie – shares off another 15% and now just 40p to sell – time for a statement?

By Tom Winnifrith, the Sheriff of AIM | Friday 1 April 2022


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.


It is three weeks until the one-year anniversary of musicMagpie’s (MMAG) IPO at 193p – c/o Peel Hunt – when founder shareholders trousered £93 million dumping stock on institutions. Today, the shares are crashing again, off 15% at just 40p to sell. The spread (10p) tells you something is very wrong. So, what is afoot?


Last week in a series of articles, I showed that the Prospectus contained a monster lie: the CFO-turned-COO was a proven fraudster, and the loss-making business faced growing competition – utterly contrary to what the prospectus stated – which would kill it off.  The response?


The wife of the CEO – whose families had made £16 million dumping shares at the IPO – made great play of buying just £300,000 of shares at 52.5p, from an institution desperate to get out.  And then there was a presentation at PR firm Mello, without A SINGLE QUESTION OR MENTION of the elephants in the room.


I suggest that a formal response is now needed.


If not, what happens next is so predictable.  There are sod-all private investors here and, after my revelations, that will not change.  Institutions know there will have to be a placing at some stage – not that this will alter the end game – so will not buy in the market ahead of the bailout. And that means that, as the smarter (these things are relative) IIs look to escape, even small-scale selling will crash the share price.


Amid ongoing silence from Magpie, anyone holding the shares is utterly insane.

This story is available to all readers
ShareProphets is reader-supported journalism

Become a member starting at £6.99 per month for all articles, the Bearcast, and our seven year archive.


Filed under:



Subscribe to our newsletter

Daily digest of our latest stories.



Search ShareProphets

Market News

Complete Coverage

Recent Comments

That Was the Week that Was

 

PICH

Pitch Pit – this stinks

 

GEX

Georgina Energy: Lyin’ Yet again

Time left: 01:49:31