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Well Kowloon congrats you were right !!
I predict that the stock, which was suspended last week, will never open again and the company will soon file for bankruptcy, just like what happened in July 2014 when Gotham City Research published a report showing that Spanish company Let’s Gowex was a fraud (http://www.bloomberg.com/bw/articles/2014-07-17/spains-lets-gowex-implodes-after-short-seller-exposes-fraud).
Yes the whole ADR thing doesn't really make sense. To be honest the whole thing is a bit odd, what was Costis trying to achieve? Surely he will be going to jail if their was actual fraud involved (which looks like it at this stage). On what happens next, I think it's too early to tell, but I've pretty much written off my investment in Globo for now. Depending on what comes to light in the near future there may be some value to be recovered, otherwise all hope lies in lengthy protracted lawsuits I would imagine...
you can rue out a buyout as first we need to asertain how much cash is left in the business. I would have thought that they would be independently audited and then if there is still a business it would start trading again. The QCM report said about half the business is real so may be able to salvage something. Im not too confident though
Depends. Forensic report and restatement of prior year financial statements. I would assume we will lose various genuine customers. Depends also if cash balances were falsified (harder for GT to get that wrong) or if the Greek and his merry men have raided the coffers as well as committing accounting fraud. I would hazard a guess at bankruptcy and winding up with a small amount returned to shareholders, of anything. Best guess. Gutted.
What happens now? Bankrupcy, liquidation, buy out ? Any ideas
if the business is mostly a fraud? seems very strange
From memory, (I did 3 years in external audit, currently an FCCA but please don't work in a technical field anymore)... There were two main ways to test receivables, key risk being overstatement. . 1) after date cash receipts ( I.e. get comfortable as to the level of debtor balance being paid off after the YE), or 2) debtor letters from customers written independently to the auditors. Basically if their customers were set up as shell entities, purely to facilitate the fraud, it would be pretty hard to audit. Interestingly the level of debtors >1 year was pretty small
Maffa, what a brilliant post. I do appreciate that. All the best.
bmwboy: Your post entitled "i hate saying i told you so but" is cringeworthyingly smug.
I see Canaccord Genuity were the Company's Broker, just like they were for Quindell. Those idiots seemt o be involved with too many toxic lying Companies for my liking.
Hold but posted recently - no PI IMHO could have seen that RNS coming, I was truly shocked, especially as Costis sold circa 42 million of his shares and that RNS of course hit the same day. This is a disgrace, worst I have known and all holders have every right to be seriously annoyed. Hope all holders get some justice here. There has to be a serious case of fraud to answer here for those who are responsible in the fullness of time. After the report there may have been some doubt certainly - but for those who held and for any other PI posters - how many can genuinely state they would receive an RNS stating what it did this morning? Point I am stating is don't beat yourself up over it. As for the future here is really does look bleak, however all you can do is wait - can see this suspended for a good length of time.
Hi, Like many others here I did not see the fraud coming. I'm lucky in this regard where I have lost a relatively small amount and I'm relatively young. However, investors cannot be expected to be able to uncover frauds, we rely on auditors to verify revenue and other financial information. I fully expect to be part of a class action lawsuit in the near future. It may end up that GT has done their work properly but were duped with fraudulent information, but an investigation should be carried. I'll keep an eye out on any further information on the class action once someone has started the process.
Guys, if we want to try to get some crumbs we have to join a class action together. More we will be and more we will have a chance to compet against other securities holders. Several law firm are specialised in class action in London, with no win no fee. we have to think about it
What an absolute heart breaker.cant bring myself to tell wor lass weve just lost circa 7grand.im probably one of the lucky ones.to all you fellow holders that have had their lives ruined my heart goes out to ye.for those that smelt a rat dont gloat on here...have a fcukin heart !!
You have to wonder, right up to the suspension, this company was still being recommended as a *Buy* in at least one share tipping magazine, I remember reading the article, fortunately I did not act on it, despite having a modest investment of approx 3,000 shares in this company, which I bought when they were around 18p, you know I never topped up despite several recommendations because I always had a nagging doubt about this company. As somebody previously mentioned, it was always hard to see how this company made so much money, there was never any real evidence and yet they were being tipped regularly by one share tipping magazine or another. I only wish I had sold my modest investment when the shares topped around 70p -80p I seem to remember, hindsight is a wonderful thing, is it not. Now I am going through all my other shares, wondering if there is another Globo, waiting to tank, happy days.
Who is it in America? Which gov body or organisation? Who will report him? I would be much happier to read a ........ "the FBI are aware of the allegations at Globo are currently investigating what (if any) charges should be brought.
It is very likely that Papadimitrakopoulos is long gone, and is now to be found - or rather not found - in some quiet, non-extradition country, as this latest episode of truly hilarious corporate fraud concludes. As for shareholders who suddenly have absolutely nothing, maybe they can address their complaints to the regulators or the auditors who allowed this fraud to continue for years, or perhaps to Globo's corporate broker, Canaccord Genuity, which moments ago also resigned with immediate effect, effectively admitting it never did any underwriter due diligence on the company for the duration of its paid tenure. No matter who they appeal to though, one thing is certain: their money is forever gone, in this latest example of corporate greed gone absolutely wild. Article on ZH.
Nothing. Company has collapsed. Sp will dive.
Not sure I understand. Are you saying you can close out at the last close price of 28p?? Doesn't sound likely.
Those who have lost a lot of money are pretty down right now. I hope we can learn a few lessons from this exoerience. Really angry at that selfish Greek ****. He has ruined many lives.
So which top City broker helped fraudster Konstantinos Papadimitrakopoulos of the fraud Globo (GBO) dump most of his shares last week? Given that the size of the dumping could have meant only one sellers surely its compliance officer was alerted and did something. Or maybe not. So which broker was it. The table below shouts out just one name.
I don't own GBO. I sold out a long while back having struck out from the early days. I sold on the day Simon Caulkwell, a.k.a Evel Knievel, said the company was bent. That was about 1 1/2 years ago if my memory serves me well. He was ridiculed at the time and I sold out simply because of his reputation, and I could see it was having an effect on the SP. I really thought Costis was straight up and am very surprised that this has come to pass. I try to meet management of companies I invest in whenever I can but never managed to meet Costis or the CFO. I guess I was lucky getting out when I did. Jsimbo is spot on, the 42m sell by Costis is indeed a smoking gun. It really stinks.
You keep referring to all negative views as 'shorters'. this is either terribly naïve or deliberately disingenuous. Also, its fine to say 'I will wait until the audit report' etc. but then why intervene here with. in any case, obvious fraud is obvious. I don't need a forensic accountant to tell me that selling 10% of the total company shares for cash in the days leading up to the shares being suspended is a bent as a 5 bob note. Btw, I am not a shorter, I am ****ed off shareholder who has most certainly been mislead, defrauded and lost a chunk of money. the only thing the forensic report will determine is how much.