Tom's tips may have been tom-tit, but that never slowed him down

Tom Winnifrith has had a number of incarnations. His first was as a financial journalist on Investors’ Chronicle and then the Evening Standard, which lead to him becoming a professional tipster.

His record as a tipster, however, is not something he can be proud of.

For instance, his tips of the year for 2011 showed an average loss of -44.23%. That includes Norseman Gold, which Winnifrith estimated ‘with extreme confidence’ could rise by as much as 85% in two years and in which investors lost all of their money. 

His tips of the year for 2012 showed an average loss of 50.95%

He also contacted clients urging them to make investments despite not being authorized or regulated to do so. 

In February 2011 he contacted Bruce Mauleverer to advise him (and his wife) to buy First Artist shares for 20p. The Company then changed its name twice and the shares (these days its called Reach4 Entertainmant Enterprises) now trade at 2.5p

He prefigured events (often wrongly) to suggest to clients news that was about to happen, which might be deemed by some to be either false advice or incitement to insider dealing.

One example was him telling a client that a company ‘…has announced a [new]contract but it is not the big news contract we had hoped for…we gather that is imminent.”

Another was him telling a client: “We believe a series of RNS announcements will make investors start to believe…We would expect news of material contract wins very soon’

There is a separate complaint by Messrs Mauleverer and McInerney to the Financial Ombudsman (FOS) which in essence accuses Winnifrith and (possibly Rivington Street Holdings) of breaching advisory regulations in seeking investments and not being fit people to do so.  

He even tipped Rivington Street Holdings - where he was CEO and a major shareholder - in his own 2011 top tips. 

“I am CEO and own 29%,” wrote Winnifrith. “But since both I and Jim Mellon bought shares at up to 35p a few months ago…I think it is very cheap. The company is in closed season so I cannot reveal any new financial information. But what is known is that in the year to August 2010 underlying EBITDA increased by at least 30% to at least £1.05m. [‘Underlying ebitda’ is just the sort of language that has Winnifrith spluttering with contempt when other companies use it.] This included a minimal contribution from the software businesses [acquired that year] Blue Curve and Jorvus. If [they] were simply to match historic EBITDA this year that would add another c£500,000 to EBITDA. And RSH has also revealed that it has reduced its annualised cost base...by c£600,000.   That should give you a base case of what you might look for this time… You can do your own sums but Jim [Mellon] and I have also done ours and we do not buy shares for charity”. In the event, the 2011 results to August showed a loss of £366,751.

In May 2011 he advised a client (via an email to Tony Othen of RSH) to buy shares in both Northern Petroleum and RSH.  “I think he will do well indeed on the former, very well indeed on the latter”.   He apparently had no idea that the profits were going down the swannee with just three months of the financial year left.

Watch this YOUTube clip where he urges viewers to buy RSH, promising “I have no intention of ever selling a shares. I’m here for the long run.” https://www.youtube.com/watch?v=Kf5tT02Tw8A&feature=youtu.be&noredirect=1

In December he advised Mauleverer by phone to buy stock at 25p. Less than 6 months later Winnifrith is gone, the shares trade at 2p and the company is later put into administration

COMING SOON: Tom Winnifrith - Fund Manager