Friday, September 14, 2012

Fri 14 Sep - IMTK

We had a terrific evening at FinnCap last night, at my good friend David Stredder's quarterly investor evening, called Mello Central. It really is amazing all the functions that David organises for investors, all at no financial gain for himself, and at no cost to investors. We're very lucky to have him in our community.

Unfortunately people kept re-filling my glass, and I think it's terribly rude not to drink something once it's put in one's hand. Hence my market report being a tad late this morning, my apologies. Thank you also for all the terrific feedback last night, the funniest one was from "Fugwit" on advfn's bulletin board, who told me that this Blog enables him to stay in bed for an extra hour each morning, as I do the work for him & he gets up feeling like he's already done some work, once he's read this Blog on his iPad in bed! Made me chuckle!

Thankfully it's a very light day for results, just a couple for me to cover here.
Let's start with Imaginatik (IMTK) a £2.75m mkt cap tiddler which has put out a positive-sounding AGM statement. The only reason I mention such a tiny company is because we met the management at Mello Central last night, and to say we gave them a hard time is putting it mildly! It's a consulting & software company, based in America, which has spent the last 16 years burning cash & failing to demonstrate that it has a workable business model. So quite why investors keep putting money into it, is beyond me. However, the charismatic American CEO made a good case for businesses innovating, but didn't demonstrate that he has a viable business. So it's not one for me, although I was surprised afterwards at how many sensible investors were intrigued by the concept, and encouraged by recent contract wins. My view is that turnover is for vanity, and profits are for sanity, so given that there was no information on whether new contract wins are even being done on a positive gross margin, then it could be the case that more turnover just means greater losses? It looks a basket case to me, so I won't be investing. Although they have some smart people on their shareholder list, including Hargreave Hale, my old broker, who are very shrewd.

There are some other results this morning, but are all in sectors that I don't cover. To reiterate, here is an explanation of what is & is not covered here.

Let's look at the top rises & fallers of the day so far, of the sectors I follow.

Daily risers;

1. Corac Group (CRA) +22% - no explanation for the rise, no announcements.
2. Mobilityone (MBO) +22% - interim results well received.
3, 4 & 5 are resource stocks.

Daily fallers;

1. 2Ergo (RGO) -42% on a Placing announcement. I held these a while ago, when they were a lot higher, but it failed to deliver on what it promised, so I sold. Not going to revisit.
2. Mobilewave -25%
3. Pathfinder Minerals - 25%
4. Aerte Group -19% - looks a basket case.
5. SocialGo - 18% - also looks a basket case.

That's it for today, have a great weekend everyone & I'll see you again on Monday morning, unless I muster up the excitement to write about anything over the weekend.

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