Tags

, ,

Received a few questions on Tejoori.

Basically along the line of its halved in price on no news for no reason – whats going on ?

Its fallen from 9.5p when I bought it to about 3.5p now – a cool 60% fall.

(Original post here)

This is purely down to illiquidity there have been a few big sales – pushing the price down. A big sale in this stock is $50k – not a large ammount in the context of assets of $28m – many of which are cash…

There is no evidence of fraud that I can find.
CEO – Abdullah Ibrahim Saeed Lootah – seems to be the son of Ibrahim Saaed Lootah who founded Lootah – construction group in 1973.

Director – Mohammed Al Zaabi – ex army retired from armed forces in 2001. Best evidence I can find is that the UAE army isnt particularly corrupt – a common problem amongst developing countries militaries… Link

Director – Saad Al Fozan – chairman watad group – looks legit (link). I am a bit concerned its address is a PO box but apart from this it looks OK… He is also general manager of Al Fozan trading which also looks legit..

So its a mystery to me why this is trading so low – I think the board are very disinterested in promoting the stock – they dont seem to want to buy more – which is very odd – but not unprecendented. On Tinci I recall the director bought £5k on what was a slam dunk takeover situation…

I have put more in – my average cost is now closer to 0.04 usd – we will see what happens – this is a sane bet but there is always the possibility of fraud…

Its high risk, high return, highly illiquid – but if this increases to half NAV it will 26 bag!

Advertisements