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My wife purchased shares through her family stockbroker, who is on the ball, and he failed to see the pitfalls, so what chance for us lesser mortals. With the shares being shorted throughout, and the rumours floating about, I ought to have had an inkling that all wasn't right, but the dividend was good, and orders pile in. I even topped up at 280p, the euphoria was so high. Even worse, I went on a sailing trip on the Baltic and was away on the crucial day without internet, so missed the beginning of the slide. An expensive holiday, and I don't think I can offset my losses, as the money was in a SIPP. Ah well, these things happen, and along with my large holding in Igas being diluted 20 shares for 1 new share, last year was a harsh lesson on the down side of the Stockmarket. I'll blow a gasket if anyone who was involved with clln gets rewarded in next years honours list, but one can almost see in coming.
buntswood you are one of many. I think of the Doncaster Pensioner who sent a letter in to Sunday Times 4 weeks ago. He was impressed with the stylish vehicles and logo running around S.Yorkshire, he purchased 1000 shares in April, basically to give himself better income ( the Div was good). At the time of his writing he stood to lose around �2000, now of course more. Too you and anyone who wishes to read, ALWAYS do your own research no matter how much you trust another source, before committing to an investment.
To be honest, anyone doing their research wouldn't have seen this coming - not best of the best.. If you would have had doubts about CLLN in June 17, then you could have probably not been able to invest in any other stock either. It was considered one of the most secure shares with good dividends and I feel it hard to digest that govt. let it go off so easily as lot of their work was at stake apart from thousands of jobs. This shows nothing is secure, not even FTSE100 ones, forget about AIMS. I was never invested here but was tempted to get in around the first slide at 40-50p. Past history of CLLN was very strong. Luckily by experience of trying to catch the falling knife with Quindell few years ago prevented me from risking. Lot of PIs got poorer with this
You could read as much as you like but they were the biggest bunch of crooks you'll ever care to meet.
I also feel it was all done in haste for some reason. Why didn't they look at option for raising more money through equity, let it be billions of shares when the sp was 200p. At that time this company had good credentials and they would have easily found buyers. Option for equity was there until last day, but probably too late to find the buyer. Govt's logic is difficult to digest as companies and PIs are still left with bad debt in this case.
badshah, the warning signs were there. One only had to look at the exceptional high level of Shorts which should ring alarm bells. Shorts ( Hedge Funds ) certainly knew more than Joe Public was being told. From July when information began to emerge, just a little investigation would have revealed all was not well. The BOD were either blind or ignorant to have not been aware of the Company's financial state many months earlier. A similar situation is developing, imo, at Debenham. but as always time will tell.
badshah, with respect just review events of the last 6 months. There has been ample opportunity to find and sell elements of the Business. The only part sold is the Health services for a token figure. The mysterious Mid East buyer disappeared as quickly as the one could say Jack Robinson. The sale of assets has been an open secret and unless it has been concealed little or no interest. As far as further funding was concerned, it seems pretty clear Banks have had enough and although it may have possible to float a Rights early last Autumn, that opportunity slowly disappeared. Other creditors were clearly having none of a D4E. The one things which did puzzle me was having stated EY were on standby to become Administrators, this last weekend, that suddenly changed in the middle of the night Sunday. We now know why...Administrators did not consider there was adequate funds to pay their fees. A very damming statement for any Company.
FD,hedge fund ringing alarm bells? During the summer they were shorting Morrisons at 17% but it didn't deter me a bit.The only thing that i couldn't figure out was why they were there.It has fallen to 10% now. I wouldn't ignore a company just because it has high levels of shorters.The hope with Carillion was the chance of a short's squeeze but with hind sight from their position at 200p plus it was never going to happen and on this occassion they new the full story.Water under the bridge.
snige fair enough. I still believe the level of shorters should raise concerns and an investor would be wise to look into a Company's background closely. Insofar has Morrisons, there has been a fantastic turnaround, probably because the change of CEO had a new vision which has worked. Added to which the Morrison Family were prepared to take control, which no doubt spurred Execs on from their lethargic ways. I guess the same is now true of Ocado, more because a Knight in White Armour has appeared. Don't think the same will be true of Debenham, they are in an Old Retailing Model and have not modernised.
Worth also checking if a co has convertible bonds..pmo is an example of a co with a high % shorts but used to cover cov bond equity risk (see recent pmo rns)
Agree with Snige this would have been a difficult call for someone without knowledge of the industry or experience of dealing directly with Clln. Given the backdrop of Interserve who on face have similar problems and who's share price has doubled in recent weeks, likewise Balfour's who have over the last few years seen a steady recovery I could see the attraction and why people felt there was an opportunity. The damage caused by a relatively small number of greedy senior executives is truely shocking. Hopefully no one on here has suffered any lasting damage.