Category Archives: Short

Zoltav Resources – Oddball

I have been reading Tom Winnifriths opinion that Zoltav Resources is in his opinion a short sell down to 0.25p. To sum it up they have enough cash to last them until mid next year having received a loan from their biggest shareholder.

I had a quick browse of the financial statements and it seems they have under a million pounds of assets/investments and cash. Their market cap is £15m. Their business strategy as far as I can tell is about acquiring resources licences/opportunities. How can they acquire anything with bugger all money?

So to me this seems a doomed company but I’d be reluctant to short it as some vaguely positive news could give a short term spike upwards in the share price and stop you out. And surely the bad news is priced in and all the sensible investors are sold up right (leaving the stubborn cavalier few)? I get the impression with companies that are on the verge of failure often attract some fanatical/cavalier investors who imagine that because it has gone so low, it will rise at least somewhat. Maybe that’s anchoring or filtering bias.