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Quindell Statement: Reaction from Evil and myself

Tom Winnifrith
Friday 10 May 2013

With its shares having tanked from 14p a few weeks ago to just over 7.41p with most of the falls following annual results on Tuesday, Quindell Portfolio (QPP) – hitherto a darling of the AIM Cesspit – has put out a statement late last night. It is a truly dismal effort. In the words of Evil Knievil “it is not an invitation to short but now an obligation.”

The statement, crafted by foxy PR bird “Bex” SH who also acts for Cupid (CUP) reads:

The Company is aware of recent press speculation regarding the equity swap and an active short position in relation to the Company’s ordinary shares. In light of this, the Board wishes to clarify that further to its recently reported record results, the Company has a strong balance sheet and continues to trade profitably with significant traction in the insurance sector.   The Company knows of no valid reason for the recent share price decline. Furthermore, the equity swap asset, which has also been subject to speculation, accounts for a small part of the Group receivables and is not a material contract in relation to the size of the Group.  This was issued as part of the funding for the acquisition of Accident Advice Helpline, announced on 3 December 2012 and was deemed to be the least dilutive funding mechanism at this time. It is not currently being exercised, and the Company believes that the counterparty will continue to not make any material transactions in respect of the Company’s ordinary shares unless the share price is at substantially higher levels.

Er… in plain English what on earth is all of that about?

 

on ShareProphets.com | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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