Canaccord
have admitted their school boy error.
“In
our note dated 16 June 2015, our per share valuation double counted
the 16.9m Conditional Placing Shares, resulting
in an erroneous share count of 142.3m. We correct our share count to
125.4m.”
You
would expect them to increase the target price to 109p based on the
correct share count but they manage to pull out another trick similar
to the ridiculous cost of funds
“At
same time, we now use our FY16, rather than FY15, net cash estimate
of £9.2m in our valuation, in line with
our 12 month target price (we previously used FY15 net cash of £12.8m
plus £16.5 of net fund from the equity placing).”
What
has enlightened them two days after publishing the initial report? I suppose they must have taken few weeks to prepare the initial report. It seems like a desperate
measure to keep the target price under 100p.
So
they have updated the target price to 99p
from
96p.
I
don't expect any foul play from Canaccord as one of the Tungsten's
Non- Executive Director (Mr Peter Kiernan) is also the Chairman of
European Investment Banking at Canaccord Genuity.
But
as per companies house documents, Mr Peter Kiernan has resigned or
removed from Directorship of Canaccord Genuity Limited on 2nd
April 2015. Is this a coincidence?
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referenced to for verification. While ev
agree with you re NIM. Ridiculous. His point is nonetheless that it's still very cheap on those assumptions. Drop me a line- we should talk.
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