Amigo Holdings PLC (lon:amgo)
Amigo – Richmond Are Carrying Out Their Sales Threat.

Amigo Holdings PLC Share Price
Grade:The Pink Grade - A Pure Slightly Informed Gamble, The Market Doesn't Like The Company But I Think That I Understand Why.
Title: Amigo – Richmond Are Carrying Out Their Sales Threat.
Company: AMGO - Amigo Holdings PLC
Share Price Then: 6.1p
Author: Ian Smith
Date: Mon 29 Jun 2020
Comments: Well, I got that completely wrong and even with hindsight I still don’t understand what is happening.

I had assumed that Richmond had the handful of private equity people on his side which was clearly not the case with only a trivial number of votes against the board.

Looking at the RNS announcements, 1% of shares in Amigo are being sold by Richmond Group, but it is not obvious where they are going as there are no RNS announcements of increased shareholding by whoever is buying them?

Is this still some sort of bluff, the hope being that whoever offered 20p a share is seeing the amount of the company they can buy diminishing so they need to come up with a better offer quickly? Or are Richmond convinced that the company is close to worthless so are after whatever they can get?

Clearly the number of complaints is increasing and it is hard to understand how aggressively the company will defend itself which is worrying.

Whilst the small number of private shareholders are being hammered here, they’ve lost so much they may think might as well stay in possibly down to zero. What is going on in private between the board, the Private Equity people and Richmond as so much value has been lost.
Read Count/ID: 122/13145

Buy/No Buy In A Nutshell
NegativesA combination of making risky loans and an unwillingness to tell complainants and regulators that the borrower and guarantor has the majority of the responsibility as they asked for and accepted the loan
PositivesNew management could get much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price7p
Last Review Price13.26p
Last Review Date02-Sep-2020
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