Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

GLOBAL MARINE ENERGY – another nightmare for shareholders

Global Marine Energy the specialist crane manufacturers, notably for oil installations have announced that ‘in preparation for the audit of the results for the year ended 31 March 2007, it has emerged that it is likely that the results will be materially worse than the Board's expectations’. Management are apparently now asking ‘the group’s advisors to urgently review the results and the group's resultant future funding requirements’.

I’m not exactly sure what more the advisers can do over and above management. Weren’t the latter group supposed to be running things and have an in depth knowledge of the group's funding requirements?

I think it means that the poor old advisers (ok, not that poor!) will have to try and rustle up a few more funds to keep this business going.

Furthermore, it appears that we are now to conclude that up to now the management actually had no idea what the real numbers were?

The shares fell c36% today which actually sounds quite mild given the disappointments of the past. I suspect that many think GME’s claimed order book will encourage a white knight approach.

Fast on the heels of the Torex debacle this looks like another AIM nightmare.
Thankfully I avoided this one. For me, it was another case of being put off by another one of those flashy tie wearers-there’s a theme starting to develop here! Much like an early accountancy school lesson of avoiding those companies run by Chairmen driving Rollers and with fountains in the entrance I think one can also add Chairman wearing flashy ties to the list!


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