UK 19:52 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
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.
Fair dues to Ron Duncan at Cloudbuy (CBUY) – he has done a similar deal to the Quindell fraudsters with Equities First Holdings LLC claiming to buy shares when he has in fact sold. But in his statement this morning he has at least fessed up to what price his margin call will be at. Rob Terry and his fellow fraudsters at Quenron have not done this but I can tell you it is c69p. And so with the shares having touched 67p earlier Rob just got a phone call… welcome to Rob Terry...who wants to be a millionaire.
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Comments
mhin
perhaps RT should try some of PLE’s medicine for Premature Ejaculation…its been tried and tested…and retains some substance
David Atherton
Well, 70p is the all-time low, and it will be very interesting to see if institutional shorts close their positions, as the technical playbook would tell them to do at this point. If they don’t then they must believe you and GCR!
Slim Fizzlebeef
“And so with the shares having touched 67p earlier Rob just got a phone call…”
RNS says its based on three day average so no call yet. reckon its all computerised so when the three-day goes below the limit a stephen hawking voice will make the call
To rob tee-ry, this is an automated message to say you have a margin call and have 5 days to comply. Have a good day. Thank you for banking with equities first holdings.
Sweet Karolina
No the 3 day average is used to set the sale price in the first place it has noting to do with the margin call price.
“If, prior to the maturity date, the value of the transferred shares falls to 80 per cent. or less of the value at which they were transferred to EFH,”
There will be other default terms. In the example Tom showed of a US company a 3 day trading halt was also a default.
Why does the margin call come at 80% of the price paid. This is an insane deal for EFH! The margin call should come at say 110% of price they paid to give them a cushion not when they are in the hole by 20% (assuming they have not sold the lot, which we know they have, but let’s pretend they actually do price neutral trading because that is what their website says).
However even just selling the lot could be a massive unbounded risk for EFH. What if something great happens to the company in the 2 or 3 year term and the shares 10 bag and EFH have sold the lot and need to rebuy to give the shares back? Ok a bit unlikely but possible. Thus there will be some binding agreement with the director concerned (not part of the main contract but a separate one) that says one way or another he will default. The trading halt is a great one to do it with. The company requests a trading halt because it has some material news, which it cannot release until contracts are actually signed, but there is a risk of that news getting out in advance and therefore to prevent market abuse we are doing the right thing by temporarily suspending trading – it could come back from suspension after 3 days releasing the great news or could come back saying the deal fell through, but the default has happened and the poor director has lost his shares as a result – the company could award him / her (must not be sexist but all the miscreants so far are men) some no cost options to compensate. Oooh the irony.
There is no way even Warren Buffet could do the amount of due diligence needed in 5 to 7 working days to really understand the downside risk EFH would be taking on in these deals for seemingly very little reward for it to work any other way.
In principle I think there should be a legit way of directors using their shares as collateral in a completely open and transparent way that does not shaft the share price – the EFH style scheme just is not it.