Member Info for Castaway

TQ, let's look at scenarios, what if Shetty was trying to borrow cash against his shs last summer and hawked them around the city, MW got wind of it looked at NMC saw it looked too good to be true and did his report - there a 100's of companies in the world why pick NMC?
I was long biased on NMC BTW!
Maybe it's just accounting problems, sorry, but I am just too cynical to believe it.

TQ - that is reasonable if the BS is as reported - what I am concerned about is that there is higher debt and basically no cash.
I want to understand why Shetty was pretty desperate for cash?
I cannot understand why the company would be suspended unless there was some more serious problems.
I have seen several companies in this position and have been here before - there is usually a lot more to it.

I don't think JC is influenced by the market, he is a very straight guy and will RNS news when it happens.
They have more drilling to do in SA, so I am sure we will get an update near term.

I want to know why Shetty needed cash last year, before MW attacked. IMO his attack was initialised by Shetty looking for further loans against his shs in NMC.
There are probably two reasons - he needed the cash as he overstretched his capital with all the new companies he created FIN etc., or he realised the empire was crashing and wanted to get cash out before it collapsed.
After seeing the earlier post from adzy it is most likely he needed cash to prop up his empire (as per 2011 buy in by Centurion) . i.e. they ran out of capital and no one would lend more to them, he got desperate and raised more personally via his shs in NMC and possibly his other companies?. IMO they cooked the books to make NMC look better than it was and the chickens were coming home to roost - hence the ledgers not matching the bank statements.
I am not certain about the politics within the company, however it would appear Centurion (probably) could have bailed out NMC once more, the main shareholders were so close who knows what the real picture is and the state of the finances.
After reading last Wed RNS though I realised the company was in a serious position.
We can postulate theories, and it will come out in the wash eventually, but for a FTSE 100 company to be in this position is totally unacceptable .
The FCA should sanction the responsible directors and auditors severely. Good luck with that!

dogger, No your NOT finished, you will find a way

I understand, I have had serious losses, you either decide to stop trading or rebuild.
You have been unlucky with MTRO and NMC, they could and may recover eventually.
I mainly trade AIM stocks and this sort of thing is the norm, but in FTSE 100 this is rare.
I understand your pain - you have to deal with it as best you can. I treat trading money as margin and not living money and never put in more than I can afford to lose (but I occasionally still do!).
I know adzy and QT say never put in more than 2%, but you need a big portfolio to do that..
Anyway I think the fact the company is not in admin is hopeful and I think a buyer will be found. I am not sure how much shareholders will get out of it, but it should be something.

deos/dogger - please do not do anything stupid - this is share trading, you win you lose. Life goes on no matter what, you will recover, I have had significant losses and I know the feeling, if you trade shs it comes with the territory.
All is not lost with NMC, there could be value for shareholders and in time a recovery.

adzy - you were wrong both times and you aren't the only one who made great profits - no need to rub it in many will lose ****loads on this.

deos good guy adzy was deramping the nuts off this when it was going up - he was short, then he realised he was wrong and was all positive - now he's long - he is wrong again!

Sorry youre a ****!

OK adzy your always correct ;-)

This would explain why they had no clue where the shs were as they were already sold

This type of transaction usually goes on in a company that is a fraud or the director wants cash without selling down his shs - Shetty wants cash but cannot sell shs (it would have caused the loan agreement default). The fund/bank offer him say 25% of the value of those shs on the basis they can sell them if they want - they sell down from £28 quid make a killing - He is happy as he knows NMC is screwed and he gets cash out without anyone knowing or the loans being called in until it is too late. All adds up with the stalling re. Freeh - gave him another month of credibility.

adzy - they have already sold the shs

I agree jinny if it is going bust it will happen soon. if nothing next week it looks better.

I agree adzy, there is a lot to be learnt for future trading/investment and the warning signs a company is a potential fraud.
I was aware of the risks but I was fairly optimistic about NMC certainly in the shorter term and judging by the price action I was not alone.

And it's usually the scam BB's that stay open the longest - there is one still open from a fraud in 2014 - forgotten the name though!

Hi ripley - I did

Shetty and his two sidekicks seem to have raised a lot of cash from their shs. The question is what for - personal greed as they knew NMC was failing?, or more likely to prop up an indebted business? - it will come out in the wash, but this looks to be a massive fraud either way and should not have been allowed to take place in a supposedly regulated environment.
I hope there is some value for shareholders at the end of this.

So I disagree Echo this is not all or nothing