Some months ago daredevil trader Simon Cawkwell a.k.a ‘Evil Knievil’ tipped Amigo shares to become a double your money stock quickly ( Daredevil trader Evil Knievil tips Amigo shares to be a double your money stock pronto) And he was right, well partially.
Buying in at 10p, the share price of AMGO rose to 30p as investors hoped the scheme of arrangement would be passed until the FCA stepped in to say otherwise.
However, with the news being confirmed that the scheme was rejected by the High Court, shares in AMGO quickly crashed.
But true to his nickname, Cawkwell decided to buy more 1.3m shares at a price of 11p as he thinks it will survive:
“I think it is fair to say that AMGO will survive since were the judge’s decision prove to be the prelude to an insolvency there would be no end of a rumpus. So I bought another 1.3m at 11p.”Evil Knievil writing for Master Investor
From a £1m paper profit to a £100k loss: where next for Amigo?
Interestingly, he also revealed that one time he had a paper profit of around £1m but is now showing a loss of around £100,000 – epitomizing the highs and lows of investing!
Some may call him absolutely bonkers while others may say he’s continuing to take a calculated risk.
Investors are hopeful that a revamped scheme may be agreed upon in due course of which the FCA still remains open to ( Not over yet? FCA believes Amigo can offer a better scheme ).
Amigo shares are currently trading at 8.32p.