Ceres Power management again try to knock the stuffing out of the share price – this time the buyer’s undeterred

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The still “shiny and happy” (on his fat salary) Mr Pummell (CEO – supposedly of Ceres!)

We are loathe to mention this stock given the shocking management by David Pummell in recent months. I personally feel that games are being played here as we have detailed in recent blogs on the stock (see tags to right).

We note the announcement that “strategic discussions” are “on-going” and again the reference to a “wind down” of the business should these not progress to a satisfactory conclusion. The absence of a statement that “there may not be any value attributable to shareholders” is telling however, and implies that there is in fact value within the business and leads us to suspect ever more that the value decimation seen in recent weeks has been orchestrated to facilitate a buyer for the business at a fraction of its true value.

After the “de-ramp” announcement, the buyers continued on in a very sustained fashion this afternoon with over 16% of the company’s shares turned over today. If anyone tries to tell me that this is “retail” investor purchasing then they’re smoking crack. Someone is buying, and for a reason, and I believe management know why. There was over 3m shares purchased at the 2.5p level this afternoon in an iceberg order – this is very obviously buying with a reason, as a £75-100k punt by a retail shareholder(s) is unlikely to say the least. This is likely an institution/fund or a stakebuilder and I expect a holding RNS over the next few days with someones hand being declared.

Ceres management should disclose who they are talking with, what value they are talking about, transaction profile and the current cash balance. Anything less is a disgrace.

The FSA should investigate this affair forthwith.


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