Am I mad or what?

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Old Jan 12, 2005, 1:39am   #1
 
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Am I mad or what?

Hi Everyone,
I am new to trading and have a lot to learn and would love to know more, I find the whole thing facinating. I have just been following Planestation for the last few months and have learned a lot about them, are they a good buy at 11p, I am sorely tempted, am I mad or what?
Thanks for this opportunity,
Richard E.
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Old Jan 12, 2005, 3:03am   #2
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The shares are strictly for gamblers. They have been promising jam tomorrow since time began and have failed to deliver (I have forgotten what they were previously called). They have always had visions of grandeur which are not matched by reality. When was the last time they made a profit or were cashflow positive?

As you probably know, they are raising £30 million via a share issue (250m shares @ 10p - placing and 50m @ 10p open offer). If you must trade in the shares, you are probably better off waiting to see the outcome of this because if it is unsuccessful, the shares will fall and you will be able to pick them up for less than 11p. One factor to consider is that the amount being raised is the equivalent of 60% of the current market capitalisation. The shares have lost 95% of their value in the last 3 years and 83% in the last 12 months.

I know one of the directors and over the last 3 years he has told me what a wonderful company it is and how the twits in the City do not have a clue of how to value such wonderful businesses. My question has always been the same - "It would be quite easy for you to mount a management buyout of the company, keep it private for a few years and then re float it and sail off into the sunset with the hundreds of millions you will bank in profits. Do you not feel that it is a wise option?" Answer .......... I am still waiting for a reasonable one.

Better punts elsewhere, avoid like the plague.
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Old Jan 12, 2005, 4:25am   #3
 
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Whatever you decide, it helps to be mad
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Old Jan 12, 2005, 6:00am   #4
 
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Madness is a pre-requisite for trading but please note that your particular brand of madness is blended with a fair degree of lunacy which can be detrimental to your trading results.
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Old Jan 13, 2005, 4:46am   #5
 
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Listen to Salty Gibbon............he's mad
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Old Jan 13, 2005, 8:16am   #6
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Quote:
Originally Posted by Richard E
Hi Everyone,
am I mad or what?
Richard E.
Rich, to get Oatman on this subject so early on your thread, you are extremely lucky. listen & take notes.
Good Luck
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Old Jan 13, 2005, 9:04am   #7
 
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Yes agreed.

I have studied Oatman's 2 posts on this thread thoroughly and my notes so far have taken up 3 reams of A4 paper for narrative and 1 ream of A3 paper for accompanying diagrams.

Thanks for the insight Oatman.
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Old Jan 13, 2005, 2:45pm   #8
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Between truth and madness lies but a sliver of a stream
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