HOT 0.00% 11.5¢ hotcopper holdings limited

Ann: Annual Report to shareholders, page-3

  1. 661 Posts.
    lightbulb Created with Sketch. 7
    https://www.copyright link/rear-window/hotcopper-s-secret-small-cap-portfolio-20190725-p52ane

    We wrote last week how ASX-listed sharemarket forum HotCopper was often used by "dark ops investor relations advisers and pump-and-dump operators" to promote stocks the posters had no intention of holding for long to unwary punters at the best possible price. It prompted a furious response from MD Jag Sanger on social media (who reckoned the only correct fact in the piece was that HotCopper has three times the audience of this newspaper).Mind you, when we pointed out that HotCopper was sometimes used to push up share prices by interested parties, we'd breezily assumed any benefit of this to HotCopper was only indirect. If only.HotCopper, which is certainly by far the largest such forum in Australia, has an intriguing way of making money. Theoretically, at least (more on that later).Say a tin-pot ASX-listed miner is conducting an equity raising. Under its Platinum Equity program, HotCopper's salespeople may approach it offering to invest up to $50,000. The offer comes with strings: the company will commit to purchasing an equivalent amount of HotCopper advertising (banner ads, email blasts or online sponsored content). HotCopper promises not to sell its stake for nine months, and not until the share price rises by a minimum of 30 per cent. Perfect alignment! For a while, at least.A page from the HotCopper Discussion Guide (May 2019) revealing the broad contours of its Platinum Equity program HotCopperRELATED QUOTESHOTHotcopper Holdings$0.170.001 year1 daySep 18Jan 19May 19Sep 190.170.180.190.20Updated: Sep 26, 2019 — 4.00pm. Data is 20 mins delayed.View HOT related articles AdvertisementHotCopper always makes clear what is and isn't an ad (as required under ASIC guidelines). But it doesn't tell readers when it has an additional equity stake in the company it's introducing them to through such advertising. Nor does it reveal its holdings anywhere else (its last annual report only shows the lion's share of its equity holdings to June 30 2018 were in the metals and mining sector).Questioned on this, Sanger says even his ad teams don't know what companies their employer does or doesn't own, and that sales decisions are made by HotCopper's external broker Euroz. So HotCopper is blind to any additional interest it has in promoting certain companies. But if it's blind, is it really aligned?Maybe that explains why it isn't working so well.Piecing together HotCopper's cashflow statements reveals that since the program's inception in 1H18, HotCopper has spent $1,694,971 on securities. It's realised $103,955 from selling some of them. And the value of the equities it hasn't sold (many of which would still be escrowed) was in 1H19 listed at a mere $1,133,651. So on paper, HotCopper is down $458,365. It could make a useful tax loss, but HotCopper would have to be able to sell to realise that.Sanger disputes these six-month old figures. He says the full-year results will be "very different".HotCopper's owners better hope so. Because it appears to us that in a generally rising market, HotCopper's investments to 1H19 were down 30 per cent. Perhaps it should have been going short ...
 
watchlist Created with Sketch. Add HOT (ASX) to my watchlist
(20min delay)
Last
11.5¢
Change
0.000(0.00%)
Mkt cap ! $21.73M
Open High Low Value Volume
0.0¢ 0.0¢ 0.0¢ $0 0

Buyers (Bids)

No. Vol. Price($)
1 1444 7.0¢
 

Sellers (Offers)

Price($) Vol. No.
10.0¢ 50000 1
View Market Depth
Last trade - 10.04am 03/04/2020 (20 minute delay) ?
HOT (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.