Member Info for Kabaa

The point is tina:

The directors are telling us the MW report is misleading and false.

A few weeks later they sell £375m shares at a huge discount to the share price.

A few weeks later they tell us they know of no reason for the share price drop (whilst more of their shares are being sold before and after this announcement)

They did not inform the markets sufficiently that they had loans out against significant quantities of their shares.

They are not exactly forthcoming about any of this and have now sold over £500m worth of shares since the MW report.

The 3 main shareholders in the company have resigned.

These are extreme red flags and are likely preceeding some incredibly bad news to come in the coming weeks.

I would proceed with extreme caution, especially people putting significant amounts into this thinking that it's an easy bounce to £12.

Do people honestly believe the directors did not know their shareholdings were being sold in recent weeks?

Do people think everything is rosy with the accounts after what has happened?

Especially after selling £375m shares last month.

So many gullible people here...

1. They have been accused by a respected researcher of suspected significant fraud, overstating profits, understating debt and dodgy transactions between common parties.
2. The company says the MW report is false and misleading, soon thereafter selling £500m worth of shares into the market at hugely discounted prices.
3. They were not even disclosing this on time but telling 1. Results will be in line with expectations 2. They know of no reason for the share price drop 3. ‘Highly preliminary takeover talks underway (whilst their shares are being aggressively sold into the market
4. 4 Directors resign. (who used to own in excess of 50% of the shares combined)

My guess is the company is in huge trouble and is about to go under. The directors are selling what they can as quickly as they can whilst the regulators investigate it for alleged significant fraud.

Be incredibly careful putting too much money into this guys and do not believe what the rampers are saying on here. They are talking utter nonsense. If MW’s allegations are true, a company this indebted can go under very quickly.

Noted bear Carson Block of Muddy Waters says, "We strongly suspect that today’s resignations are due to more than misreported share ownership. We believe the share ownership and pledge debacle is a symptom of systemic rot and corruption at NMC. We note in particular that resigning director Basaddiq had been a partner at NMC’s auditor, EY, for many years and we remind investors that we voiced concerns about the relationship between NMC and EY.

The ignorance on here is astounding.

The directors have now sold well over £500m of shares in the past few weeks.

These shares have been sold

1. Without notifying the market on time.
2. Whilst telling us everything is rosy
3. Whilst telling us on the 4th Feb they know of no specific reason for share price drop. (whilst selling from 3rd Feb to 6th Feb)
4. Then telling us there are takeover talks (whilst further selling 6m shares that day)

I doubt this is just an honest mistake. Does it not seem suspicious this is all happening literally weeks after Muddy waters Report?

Some of you should perhaps read that:

https://www.muddywatersresearch.com/research/nmc/mw-is-short-nmc/

After what is happening here over the past few weeks and the directors selling £500m worth of shares, am I the only one seeing a few red flags here?

I can see this going to zero or getting suspended very soon. Something...or many things are not quite right here.

I think we will have much worse news to come...

What are you thinking adzky?

It looks pretty dire and agree there must be something much worse that has been unearthed

Well they've managed to sell around 600m dollars worth of shares?
Now they can sell the rest fairly quickly, not being on the board.
Mrd5432 Will buy a few more lmao.

This is unfolding faster than I thought.

A lot more bad news coming for this to happen id expect.

Peopoe were talking the same nonsense on metro bank and many other dogs.
You're far better off not trying to pick their bottoms if you don't want s**t on your hands.

Many broker clients will be selling in the weeks ahead after downgrades and sell notes.
Many institutions that follow s&p and Moody's credit rating agencies will be selling.
Many pi's will be selling after realising they have just bought into directors selling into 'takeover talks'
Many bottom pickers will be selling as they realise this probably is not the bottom.
Ftse 100 trackers will be selling as it gets kicked out of the ftse 100.
Perhaps directors or now ex directors further Selling?
Many longs leveraged up on spreadbets will be selling around and below the 700-750 mark.
Any other shares that have margin calls that get triggered on lower share prices? Probably.

This in my opinion is far more likely to continue to avalanche to new lows than suddenly bounce back to £10.
People (especially people on this forum) will keep buying it all the way down and talking about a 50% bounce but that is highly unlikely until we get much lower. (E.g. if it crashes to £3.50, it may bounce to £5.25 quite quickly.)

The "highly preliminary takeover talks" announcement came out at 7am causing the shares to rally from £7.
The same day the directors had many millions of shares sold into the rise.
The next day 1 of the parties said "we will not be making an offer for nmc"

Don't be surprised if the other party makes absolutely no bid either.

Meanwhile many brokers have removed coverage of nmc or downgraded it's debt and share price forecasts for 12 months ahead.
Yesterday the same director has resigned.
Institutions will likely be having meetings to get this off their book or at least sell down some of their position.

£5 is more likely here than £10 in the next couple of weeks, in my opinion. In fact £3-4 would not be surprising considering what has happened, especially in the last 8 weeks.

They tell us they're in highly preliminary takeover talks whilst dumping 10's of million of pounds of stock into the rise.

With the week before telling us they know no reason for the fall in share price.

OK!

From Moody's

"Furthermore, the review for downgrade reflects uncertainty surrounding the actual ownership of the company which could trigger a change of control and lead to a DEBT ACCELERATION based on the definitions in the company's syndicated loan facility agreement."

Yet people on this forum will keep buying the equity all the way down....

https://www.fool.co.uk/investing/2020/02/13/why-has-the-nmc-health-share-price-crashed/

Suggests to avoid this like the plague at the end.

They've just had their debt downgraded. This is not going blue tomorrow.

More interest on debt = much less profits = company has much less value.

Also it makes it much less attractive to raise money through shares issuance.

This is very negative for the share price and would be suprised if it stays above even the 590p downgraded price targe from Societe Generale this morning.

Leonw - watch the price tomorrow morning then re-read your post.

The bottom for the share price is zero mate.

Look at the balance sheet. The stated debts are massive compared to stated profits.

Allegations are suggesting this is much worse.

As bonds get downgraded and share price gets downgraded, they need to pay more and dilute more at lower prices for to raise money to pay down their debt.

This can fall a lot quicker than it has already fallen.

Most who have tried to pick the bottom of this have regretted it so far.

Caution urged - especially to those emotional lot who keep averaging down not understanding what they're buying.

I said earlier today plenty more banks will downgrade the debt and equity in this.

The fact Moody's have downgraded the BONDS shows how much trouble NMC are now in.

People thinking this is going back to £12+ are in cloud cuckoo land.

More downgrades to come. Just remember the bond holders always get paid before the shareholders. This is NOT good news for the share price.

And the same will happen on the downside if ii's decide they want nothing more to do with the stock and get it off their books.
Which I think will be highly likely over the coming weeks.

Plenty more banks will downgrade the debt and equity in this in my opinion.

Still no clarification on allegations.

Would not want to be holding this over the weekend.