FCA asked to investigate Quindell for Market Abuse (again)

Comments

1. ---

   Phil

   17 March 2015, 06:55

   Yes I agree, shocking behavior from a board, but that is Quenron for you. It pretty much went to the script. No doubt some of the asylum pitched a few bob in, you know the odd bit of cash around for £50k top up, they were in a frenzy yesterday..

   I know that Terry walked away with circa £15million, but that is a price of less than half a quid. What would he have made had Quindell carried on in particular with the aid of that cannacord buy note.

   But then nigh of 2 years ago now, he walked into 2 problems, these two :-

   http://www.shareprophets.com/views/18/quindell-portfolio-is-an-accident-waiting-to-happen
   http://www.shareprophets.com/views/35/quindell-portfolio-contract-win-or-not

   It’s been downhill for him, all the way down, ever since.

   What a phenomenal tenacious piece of journalism.

2. ---

   turbograndad

   17 March 2015, 12:20

   Tom
   They may have changed the crew, but the boat is still full of leaks, soon to sink.

3. ---

   Sweet Karolina

   17 March 2015, 12:59

   Tom,

   There is nothing in QPP’s RNS that is untrue and there is nothing in SGH’s ASX announcement that contradicts what QPP said in their RNS. Things are being inferred from what is not said.

   Yes there has been market abuse – there always is with QPP. It is however sufficiently cleverly disguised such that the chocolate teapots at FCA could never pin it on an individual.

   The ST article came from a “market source”. As a Journalist Harrington won’t reveal his source, but he will claim he printed what the source told him in good faith.

   Harrington’s source never said an offer had been made, but that one was expected and then gave detail of figures and dates, which could either have been made up or could only have come from the inside. QPP then confirmed one aspect of what the “source” said ie the figures, but went on to say no guarantee of and offer and also that it was just one of the deals that had been discussed. To someone who wants to believe that is enough to confirm everything the source said must be true (it was definitely from the inside else how would he have exactly the right figures). However to those who have seen the game played enough times, it pretty well confirms that the whole thing was a market abusing set up. QPP provided the info to tame journalist Harrington and already had their RNS drafted before the ST article was published and they knew exactly what the effect would be. They knew SGH would put out their own announcement, which is virtually a carbon copy of the last part of the QPP RNS and a carbon copy of what they said last time – no rocket science needed.

   We all know all of that, and when 23 March comes and goes without an offer we will be 100% sure of it, but an offer was only expected and expectations are not always met, but as QPP did not raise those expectations in its own announcement, far from it they said there was no guarantee and offer would be made at all, QPP do not need to say anything about the expectations not being met.

   The question is why bother. The PwC report will have to be released soon:

   27 Feb:

   “The Board has now considered an update from PwC and one from the consultants, Richard Rose and Jim Sutcliffe (the Company’s prospective Chairman and Executive Deputy Chairman) (“Consultants”) who are assisting the Board. The updates covered, inter alia, ongoing strategy, the outlook for the business and appropriate revenue recognition policies. As a result, the Company confirms that:

   — The Independent Review is ongoing and has taken longer than originally anticipated given the high level of corporate activity of the Group. Advice in relation to the Company’s main accounting policies (in particular revenue recognition in the Professional Services Division) is being further considered and no conclusions have been reached. The Board now expects that the Independent Review will be completed in the next few weeks and shareholders will be updated as appropriate as to its findings;”

   They may be able to spin it out to end of March.

   They might be able to do a quick placing at a massive discount with bucket shops who could flip the stock out quickly, but how much would the bucket shops take? The game would be up for QPP as soon as they did it.

   I doubt the ramp is to enable the former owners of Navseeker to get a good price when their shares are admitted to trading on 20 March.

   Could some of the companies QPP bought with shares still have shares to sell and then buy services from QPP with, in order for QPP to settle more bills that have CCJ / winding up petition threats attached to them?

   The only thing we can all be certain of is that FCA would never be able to find out who was responsible for the Market Abuse or for what purpose it was committed, even if Vince Cable and the other useless tosspots that run our country demanded it personally from Martin Wheatley and told him if he did not sort it out he would lose his bonus for another year.

   http://www.theguardian.com/business/2014/dec/10/fca-chiefs-lose-bonuses-botched-life-insurance-briefing

4. ---

   AK47

   17 March 2015, 15:02

   Tom, does the anybody at the FCA give you a reply and investigate the fraudsters further?

5. ---

   jimmy

   17 March 2015, 15:10

   The Winnifrith trademark “I put it to you”.

   Seriously though, excellent work , as ever. A long end game but the desperation is showing now. Very odd the SP did not fall today but the PIs holding now are presumably all fully paid up members of Quenron’s religious sect of devotees. They seem to be keeping the share up – despite the S&G RNS blowing QPP out of the water.

6. ---

   Batman

   17 March 2015, 16:28

   Tom – I’m looking back through the last couple of years of news on Quenron and I’ve found a gem I’ve not heard you mention and that is the equity swap fiasco used in the purchase of the now shady AAH acquisition. I would be grateful if you would mind revisiting that but with the rigour you’ve shown of late. There’s something really fishy in that on reflection (similar now to the Equities First bullshit). And given what we now suspect on the AAH acquisition there’s a few rocks left unturned there. Care to work your magic mate?

7. ---

   alcira16247

   18 March 2015, 03:46

   Tom

   Well done – if enough of us make a fuss, to the worthless FCA, something must eventually happen…… errr……yes?

   There is definitely a sniff that’s all not well in Quindell land, despite the recent shameful ramping.

   I refer to Friday, Feb 27 2015 RNS that can’t disguise there seems to be discord between the management and auditors:-

   “relation to the Company’s main accounting policies” – “revenue recognition” – “is being further considered and no conclusions have been reached”

   I would suggest that such apparent disagreements would, to more astute investors, set alarm bells ringing and signal a sell. The case that QPP share price has hardened proves the effectiveness of the boards strategy of pumping is working, to what ends, is a matter of continued speculation.