By Tom Winnifrith | Thursday 4 February 2021
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The FCA will by now have had ample opportunity to read yesterday’s explosive dossier on Zoetic (ZOE) HERE. I sense, however, that most folks owning the shares will not have done so since they think not paying £1.99 for a day pass is a cost saving as they prepare to kiss goodbye to their savings. Whatever. It is a false economy for you morons. But for the cheapskates, outside the paywall, I offer you one slam dunk and material lie from that dossier. And companies that tell monster lies to deceive investors are frauds, are they not?
You see if a company tells one very massive lie and is caught, the odds are that it has told a stack of others and companies that lie to you on a serial basis are not good investments. They are frauds. So here is a major lie for you.
As for Zoetic and its advisers at Allenby Capital and Buchanan, I want you to sue me for libel as the disclosure process would be a hoot so let’s make this easy. Tom Winnifrith says: “Zoetic PLC has deceived its investors by lying to them and that makes this company a FRAUD.” Gents, over to you: are you happy for Zoetic to be branded henceforth as liars, a fraud, or will you see me in court?
So what is the massive, material and recent lie?
30 September 2020, Preliminary Results Statement:
The directors of the Company are pleased to report that the consumer reaction to the Company’s CHILL branded products has exceeded their expectations; in stores where CHILL has been on sale for several months they have experienced consistent increased sales, month on month
28 January 2021, results for the 6 months to September 30 2020.
The Period only saw limited initial sales of our CBD products as we were selling online only, and the physical store roll out had not yet begun
The underlines are from me. I put it to you that, if one assumes that the more conservative statement and one backed by hard lack of sales numbers, that is to say the 28 January 2021, RNS is true, the statement from 30 September must be a 100% slam dunk and highly material porky.
Good companies do not tell monster lies to their advisors and investors. And honourable advisors quit when they realise they are being lied to and are thus acting on behalf of a FRAUD. Richard Oldworth at Buchanan PR, Nick Harriss at Allenby Capital, we have known each other a long time. I think you are honourable men who would not, knowingly, act for a company that tells monster lies, a fraud. Please do not make me revise that view.
The shares remain a sell at 68p with a target of 0p-5p for all the 60 red flag reasons explained yesterday in the dossier.
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