3576 days ago
Shorters, or bear raiders, are vilified by the ignorant as destroyers of wealth and of jobs. Some folks want shorting banned. They are wrong. The only people who benefit from banning shorting are crooks, liars and frauds. Capitalism needs shorters for it to work efficiently. Here’s why.
Let me ask you to point out how many PLCs the FCA or before it the FSA ever called out for fraud and had suspended? Er…zippo. The Regulator is a box ticker, an agency of Government and thus, by definition, useless. It would argue that its job is not to seek out fraud but to act on it when shown evidence. That might just be a defence but you then ask who will seek out fraud and thus present the authorities with that evidence?
Occasionally you have a kind hearted soul such as myself who does just that. But the reality is that spending months and months researching a company really is not going to make you rich. The ShareProphets operation generates enough revenue to allow me to spend some time doing such work but I could not afford to do it full time.
And thus the only folks who are going to have enough of a financial incentive to do such work are those in the bear raiding community. It took Gotham City many months to prove up its dossier against Spanish fraud Gowex. Now I know that Daniel Yu gets an intellectual kick
3578 days ago
In the wake of its 5 day kill of 1.4 billion Euro capitalised fraud Gowex, Gotham City Research has renewed its attack on Rob Terry and Quindell (QPP). It has not before used a five letter word beginning with F in connection with the AIM posterboy. It has now.
3578 days ago
For the avoidance of doubt I think this note from broker Killik is unmitigated drivel. Quindell (QPP) has not answered a number of key Gotham points. Quindell’s cashflow looks incredibly weak. Killik refers to a “number” of Red Flags. There is a very large number. As to major shareholders doing Due Diligence, I guess they did with Gowex too. Maybe Killik can explain how many shares Quindell issued to itself to buy PT Healthcare and how many it has dumped without telling us? Anyhow in the interests of balance I bring you a buy note from Killik. My stance remains sell with a 20p target. Killik writes:
3583 days ago
When Gotham City published its damning report on Quindell (QPP) supporters of Rob Terry’s firm were quick to rubbish Gotham as a two bit operation with conflicted interests which did not know what it was talking about. On July 1st Gotham turned its fire on Gowex a US and Spanish listed firm with a market capitalisation of Euro 1.44 billion saying that its shares – then Euro 19.91 were worth zero. Today the CEO has admitted that it was all a fraud and the company has gone bust. It took just Five days.
Of course Gowex initially denied all of Gotham’s charges. It said that Gotham had got ait all wrong, reporters were briefed that Gotham was conflicted and it noted “The independent stockbroker analysts have published target prices ranging from €17 to €31 per share. The market consensus is at a value of €23.97 per share.” Hmmm might be some downgrades (to zero) tomorrow I suspect.
Yup six brokers all loved the stock (including Singer N+1 from London). So when folks tell you a stock must be a buy because respected brokers say so just think of Gowex.
And of course Gowex was going to sue Gotham for libel – see HERE – so when a company says it is going to sue a bear
