Evil Knievil: New Year’s medley

Penumbra (NYSE:PEN) update: I have been on to Gabriel Grego in NY and whom I greatly respect. He advises a short-term target of $159 and should either the SEC or the FDA investigate the price should rapidly go below $100. In view of the fraudulent promotion of the stock – using a non-existent spokesman and expert – this seems entirely reasonable to me.

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It was Sir James Goldsmith who advised that he who invests with an eye to saving tax will soon have no tax problems. However, I overrode this about seven years ago when investing c. £30,000 for one of my daughters in Ilika (LON:IKA) a company proposing to revolutionise batteries. Of course, the tax relief came to £12,000 and then the price started to slip – I think as low as 20p earlier this year.

And then – mirabile dictu – the recovery started. I know not how or why. The only explanation that I can offer is that our old American friend, the retail investor, elected to start to go mad. Apparently, there is some competing company which is valued at around one hundred times IKA. Anyway, IKA closed on Christmas Eve at a startling 260p. We’ll see.

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I just cannot comprehend Supply@MECapital (LON:SYME). It stands at 0.55p and is therefore capitalised at well over £100m. It’s a short of course but so far I have been unable to borrow stock.

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When Cineworld (LON:CINE) got into trouble a while ago (this was before the Covid wave of audience destruction) its debts were insurmountable. That remains the case today only more so.

I very nearly shorted it at around 20p but held back, arguing that the assets had to be managed and that therefore a debt for equity swap would not be helpful. However, now 60p, CINE looks well overvalued to me. there is plenty of borrow. Warning: this will not be easy.