Clontarf Energy (LSE: CLON) is typical of some of the dross available to investors on the AIM.
Clontarf’s results RNS today is quite depressing reading given that the firm has yet again failed to book revenue and bases the majority of it’s balance sheet value on intangible assets: total assets £3,465,664, intangible assets £3,058,916.
Where’s the value in that?
And where’s the value in zero revenue:
It appears that like a lot of it’s AIM listed brethren, Clontarf derives the majority of it’ income from placings:
Clontarf Energy plc announces that it has raised £500,000 before expenses through a conditional placing (“Placing”) of 71,428,571 new ordinary shares (“the Placing Shares”) at a placing price of 0.7p per Placing Share…Following Admission of the Placing Shares, the Company’s issued share capital will consist of 454,225,781 ordinary shares
The Clontarf Cashflow Statement:
When all you have is placings for cash inflows and your asset value is based on thin air then you’re stock cannot be deemed investment grade.
I’ll pass this one over.