No Images? Click here Smiles Inclusive Limited - Share Market ActivityMarket activity had appeared to have dried up in this company so we took a look at the buy and sell bids. The market was showing 13.5 cents last transaction without a trade on the morning of the 15th July when we took a look at 12 midday. The market was showing as follows:- Buy Bids · 30,000 to buy at 13 cents. · 50,000 to buy at 12.5 cents. · 5,000 to buy at 12 cents. · 86,000 to buy at 11 cents. · 353,000 to buy at 10.5 cents. · 402,000 to buy at 10 cents. And further buy bids below that. If all the buyers prepared to pay at least 12 cents were satisfied, that would amount total a paltry amount $10,750. Sell Bids · 15,000 for sale at 13.5 cents. · 38,000 for sale at 14 cents. · 5,000 for sale at 14.5 cents. · 91,700 for sale at 15 cents. · 25,800 for sale at 17 cents. What is clear that is that if a significant Smiles Inclusive shareholder wished to sell out of the company at market, the price would quickly fall to below 10 cents per share, and indeed, by midday today the 23rd July 2019, the share price was down to 11.5 cents. We note that on 20 June 2019 Smiles Inclusive Limited announced a share placement to “sophisticated and professional investors” to raise approximately $1.2 million dollars at $0.14 cents which was confirmed on 21 June 2019 as a placement at $0.14 cents raising $1,216,591. It was subsequently reported that a company called 2020 Asset Management Pty Ltd owns 5,800,000 of these shares being a company associated with a Mr Peter Carroll. This amounted to $812,000 of the total placement. It is not clear why professional investors were placing $1.2 million into a troubled dental business where the share price has been so weak; there have been substantial profit downgrades and the last half yearly report indicated that the company was in breach of its banking covenants. We note that there has been no subsequent announcement to the effect that the company is no longer in breach of its banking covenants so we wonder what the current status is? Those who placed the new capital on 20 June 2019 must have been confident of turning around the company because immediately following that placement it was obvious that any attempt to sell a large number of shares would collapse the share price, almost certainly to well below 10 cents per share. An alternative theory is that the company was desperate for some cash to shore up its balance sheet and begged a “white knight” or “white knights” to place money into the company. We look forward to the full year’s annual results announcement and financials of Smiles Inclusive Limited, and indeed, all of the listed dental and veterinary corporates. We do indeed live in interesting times. Best wishes to all Dentists, GRAHAM MIDDLETON The Synstrat Group are Australia's most experienced Dental practice business advisers, accountants, practice valuers and licensed financial advisers. The information contained herein is of a general nature and no specific action should be taken without individual advice. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |