Globo - here is THE 40 page bear report - OUCH!

Comments

1. ---

   Mr BBM001

   22 October 2015, 14:57

   https://www.google.co.uk/search?hl=en-GB&source=hp&biw=&bih=&q=Gabriele+Grego&btnG=Google+Search&gbv=1

   http://www.qcmfunds.com/team/
   http://zanshin-capital.com/Zanshin_Capital/Team.html

   “Such companies typically sell at a premium and only during times of crisis they can occasionally be acquired at the discount we require: it is precisely at those times, when most investors are running for cover, that we are most active and typically buy aggressively.”

   Now having read the ‘analysis’ as presented by Gabriele Grego, as advised by Cawkwell, I might gain the impression that it is ‘correct’ but I also gain the impression that he might think there is ‘value’ in the company.

   What better way to set a company up for ‘aggressive acquisition at a discount’ than exposing its ‘skeletons’?

2. ---

   Gabriele Grego

   22 October 2015, 15:52

   Dear Mr BBM001,

   I wrote my research in full honesty and with an open mind. I did not make up my mind about this affair until I saw the evidence accumulating and pointing only in one direction.

   Of course we are a commercial establishment so we are in this for the profit, but a big motivator to come out with this one publicly was to avoid the pain of losses to the countless other people that might invest in this company in the future or lend money to it.

   Our fund does invest in undervalued companies during times of panic, but on the long side we prefer large established names such as American Express and IBM that are recently trading at very attractive valuations.

   I am afraid that we would never touch Globo on the long side given the issues we highlighted in the paper.

   Sincerely

   Gabriel Grego

3. ---

   wildrides

   22 October 2015, 16:49

   Blimey …………..can of worms does not even come close ………….. infact its just worms , there is no can to hold it all in .

   Does Greece have a Mafia? If it does I think you might have found several outposts , including a London one . What is it about Greeks ? Do they all have to swindle and tax evade for a living apart from the odd law abiding Olive grower. I just cant believe it could be so bad but it patently is . Only one thing could be harder and thats finding out where AFRI Ags refrigerated truck operating depot and web site is located in Africa !

4. ---

   drunken sailor

   22 October 2015, 21:37

   Gabriel

   It is very good of you to answer BBM’s question personally.

   I have also worked tirelessly to bring key facts to the attention of the masses and in doing so have saved many a lot of money, but we cannot save them all and many just want to abuse us for trying to save them – ce la vie.

   Many of those who are already sitting on large losses are doing so because they can’t bring themselves to convert their paper loss into an actual loss (the red flags have been there and reported on for ages). They cling to an absurd belief in the non existent reverse Newtonian law that what goes down must go up and therefore ignore all the reasons why it will go down further and maybe never come up at all clinging instead to any sign that a recovery could occur someday. Even this is illogical as it is still better to sell and buy back later at a lower price.

   I have not read your research yet, as I am not long / short on Globbo and have no intention of becoming either. I suspect, given the fanfare, your report will be something to savour for someone like me on the sidelines. I will therefore read it with great interest when I have the time to enjoy it, as I am sure there is plenty in there which will help me to conduct my own research into other dodgy companies better.

5. ---

   Phil

   23 October 2015, 00:25

   There isn’t a rule book on the planet that can cope with the abject stupidity of some of the clowns who trade shares on AIM. Had this poster read the report properly he would have noted the auditor BDO did try investigations in Globo subsidiaries and got kicked off. I quote yet another idiot on the LSE Moron board

   Anudak
   Posts: 3
   Observation
   Opinion: Hold
   Price: 28.25
   QCM Report
   Thu 23:35
   I find it very difficult to accept that Costis has spent 18 years of his life designing some kind of scam/fraud! Pause and think about this for a moment – 18 years – really? Are we to believe that their Auditors, Banks and Institutional Investors were fooled by Costis and that TW et al, who are unlikely to have private access to Globo’s financial information, discovered a scum/fraud. Very hard to believe.

   This type of manipulation is designed to hurt private investors. Institutional investors carry out their own due diligence and buy and sell accordingly – I do not believe for a minute that, e.g. Forum, would base their decision making on this report.

   What would I do if I were Costis? Firstly, I will ask for trading in the shares to be suspended – that will ensure Enismore will not be able to close their position tomorrow by taking out private investor’s stop losses. Secondly, I would invite a group of reputable financial reporters to my office and show them third party documentary evidence that verifies the bank balances etc..
   End

   The signs that something was wrong have been swirling around for some time. If they are going to clean up AIM, then they could do no better than to stick some of the idiots who trade it into the loonie boonie bin

   I am short

6. ---

   Dick

   23 October 2015, 00:46

   “What is it about Greeks ? Do they all have to swindle and tax evade for a living apart from the odd law abiding Olive grower…”

   Err…yes!

7. ---

   Mr BBM001

   23 October 2015, 01:05

   Thanks for the reply Gabriel.

   I was, as per my name and as intimated by Drunken Sailor, being a bit of a tongue in cheek Bulletin Board Moron. My suggestion seems like the sort of straw they might clutch at. Thanks for the well researched report….

   Oh I’ve just seen they have suspended. Well done.

8. ---

   Bond

   23 October 2015, 01:32

   Will they resume trading today?

9. ---

   bwakem

   23 October 2015, 02:28

   100% a fraud. Even Rob Terry would blush reading that report. I am short from 41p ish.

10. ---

    RTN

    23 October 2015, 02:57

    A few quick questions for anyone:
    1) How long (at the most) can a company stay suspended on AIM without the exchange booting them off?
    2) If they were booted off – what happens with existing short positions if they get delisted?

11. ---

    drunken sailor

    23 October 2015, 04:06

    RTN they get booted off after 6 months in suspension. However the Nomad is likely to resign and it would be one month from then.

    It will only be when the company goes into administration that shorts close at 0p until then the shares still exist and could get listed else where. You could be in for a long wait. Depending on how you are short the company providing the short may institute a scheme between shorts and longs to net off. You don’t get everything you would get for 0p and longs get a tiny amount.

    If the Nomad does not resign, the company may put out a rebuttal and ask for the shares to continue trading again. AIM regulation, being complete chocolate teapots would probably let them. If that happens, don’t be greedy take profits on your short.

12. ---

    Investor1989

    24 October 2015, 06:07

    http://www.proinvestor.com/uploads/boards/73484_Globo_Plc_update.pdf

    First of all. Really great report written of you Gabriele Grego. It is great for the stock market to have someone doing the research. It was great for me as long investor to read the counter arguments you had. So thanks.

    In the link above i listed up some of the Things i think you missed in your report – would love to get your opinion on this if you would – if i really should not be long this stock i would need more conviction to sell my shares.

    Best Regards
    Andreas

13. ---

    RTN

    26 October 2015, 03:07

    Thanks DrunkenSailor – not in for a huge amount – so can just wait it out. Be interesting to see what happens now after today’s news!