I can’t believe that some people are jabbering on about how great Wishbone Gold ((LON: WSBN) are! I totally disagree with the HotStockRockets team, (whoever they are). The company are all but running on fumes! It’s a ‘Hans Christian Andersen’ moment. The Emperor has no clothes. The last set of interims state that they had, as of June 30 2015, circa £108k in cash and cash equivalents. A perusal of the last known balance sheet exposes the preposterous ramping that’s going on. Wishbone are a precious metals trading business and a company that need cash and need it quickly.
The company’s’ run by a chap called Richard Poulden, who operates out of Dubai central. Richard has a beneficial interest in 417,226,971 shares. I don’t know Richard, he’s probably a nice chap, sadly the company he is running is massively over-valued. It’s a dog. The current SP is 0.5p. The market cap is £5,000,000, The question is on what? They’ve stated that they have total assets of £936,393. That figure is wholly miss-leading, and here’s why. The figure is made up of cash & cash equivalents (£108k). Trade/Receivables (£36,821). Investments held for resale (£384,537), which comes to circa £530k. The rest of the assets figure is made up of ‘hot air’ £406,000 of intangible assets. Remember this was as of 30 June 2015, so their cash position will be some what eroded as of 10 months further down the time-line. They are running on sentiment and close to bust.
The recent grandiose statement of the acquisition of Precious Metals International Ltd (“PMI”) and its wholly owned subsidiary, Black Sand FZE (“Black Sand”) in an all share transaction is yet another fantasy story being used to ramp up their share-price. Wishbone intend to give 480,000,000 shares for PMI at a price of 0.27p per share, ergo £648,000. A company that made a loss of £5,564 and has assets of £454 quid! Just slightly more than I currently have in my wallet! It’s a joke!
On a fundamental basis the actual value of Wishbone is listing value, £500k and assets £530k, ergo circa £1M. A shareprice of 0.10p. As for their Aussie assets, unless Richard and HotStockRockets, buy a pick and shovel and INVEST SOME MANUAL SWEAT, then you can right them off. Nil par, no value, zippo! Wishbone Gold are trading at 400% over true value. It should be noted that the last RNS from the company was yet another ‘brouhaha’ over getting into £2,000,000 of debt to keep the company afloat! Who is going to give Mr Poulden £2M? More importantly what is that £2M going to be secured against? The company do not have any thing to secure it! Unless you count the £454 quid in PMI assets….
Wake up. Sell and get out, take your profit and run. As sure as night follows day there’s a massive dilution on the cards here. Indeed, if they don’t place or suck in £2M in debt they will go bust.
With an insanely over-valued share-price it would be insanity for Wishbone to NOT take advantage and place immediately! That placing will be at a huge discount. Placing Ahoy!
Viva!
Dan
