"Is it time to buy?" Those of us who have been saying from day...

"Is it time to buy?"

Those of us who have been saying from day one that IWG is a lemon would say there has never been a better time to sell. Like, while it is still worth something.

They have just diluted the share holdings once again with another pitiful capital raising. That should keep them going for another 6 months or so, then they will have the begging bowl out again early next year. It is hardly surprising the share price has tanked. What else would you expect?

There wasn't any comment in the forum about the $1m loan part of that last raising. I thought it was astonishing. They have to pay back a quarter of it within 3 months, which is $275,000 including the interest. That's hardly enough time to invest it, let alone get a return from it, and the whole lot has to be repaid within 9 months. So in practice it seems like both sides entered the loan agreement with the expectation that they will allow it to convert. That leaves the creditors taking their converted shares at 20% below market rate, plus their $75,000 in interest. That strikes me as a terrible deal for the shareholders, but desperate times and all that.

The next quarterly accounts are out next week, and those are the first which will show a full 3 month's worth of TLS sales. They will either indicate a rocket about to take off, or a company heading for administration. So maybe it is time to buy if you like a gamble.