Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
WM I seem to remember that there was an argument about hardware and software sales and the difference between accounting methods between the USA and the UK. Obviously, Autonomy as a british company they used british accounting methods. This no doubt will be used as part of ML's defence.
In addition to that the ML extradition problem has not gone away. On the one hand extradition has been agreed but on the other he can appeal. Regardless of that his legal costs of £4million per months can only increase and over a longer time period. At some point he will need to cash in some of his shares and that will have an adverse effect on the SP.
Because of the continuing uncertainty I sold some of my shares this morning at a small profit. But, I still have another account where they are at an average of £6.45 which I will hang onto.
sw ML might have taken out insurance to cover legal fees but maybe it is capped. And, from memory his legal expenses are I believe are currently £4 million per month. Now he has got to appeal his legal costs are going to cost more and over an indefinite time period that could be years!
This is crazy. On Monday first thing I will sell a chunk of Dark on my HL A/C that is hovering just over break-even and if the price goes down I will buy back. I have more with A J B that unfortunately has an average of £6.45 I will just have to sit that one out. What bothers me is that the company has yet to post a profit.
ML does have health issues so I expect he will appeal on health grounds at the very least. This has been dragging on for years and probably years to come so the stress must be taking its toll on him.
Judge Mr Justice Hildyard said:-
"However, I will also deliver by 8pm today to the parties’ legal representatives, but only to them, a copy of my draft judgment setting out much more fully the reasons for my conclusions. "
Presumably, this means that Priti Patel won't make her decision to extradite until after 8pm and before midnight tonight. But as mentioned previously she can ignore altogether and let the extradition will lapse.
https://www.standard.co.uk/business/mike-lynch-loses-autonomy-court-hewlett-packard-b979350.html
ML has lost the civil case against him. But Pri Patel will decide whether he will be extradited to the US to face criminal charges.
If he doesn't have to go to the US maybe the civil trial will be conducted by video link or a UK trial under british law.
I don't suppose Priti Patel will wait until 23.59 tonight before making her decision. It could be anytime between 11.30am and midnight. On the other hand she could totally ignore the extradition request and let it lapse.
https://www.businessweekly.co.uk/news/legal/lynch%E2%80%99s-extradition-fate-home-secretary%E2%80%99s-hands
Judging by the way the sp continues to fall maybe his fate has already been decided.
I have gradually been buying back into Dark on the dips. But, just when I think the SP can't go any lower.... it does! How many more shorters are going to come out of the woodwork with yet another twist to give the sp a bashing!
One more week to wait as to whether ML extradition can be kicked into the long grass.
https://www.theregister.com/2022/01/19/autonomy_trial_judgment_date_possibly/
It is no big surprise that Dark is being shorted but it has taken a long time for it to come to light. If Shadowfall has had a short position since October does that mean the sp has already bottomed out? Or will others take short positions and the sp will drop lower?
Vitrium sold a third or 11,000,000 Darktrace shares at the beginning of November and that sent the SP crashing. The shares that they retained 20,800.000 were subject to a lock up period of 60 days. That period has ended today and are now free to sell those shares. Just wondering if that has any bearing on the SP drop.
https://www.fool.co.uk/2021/12/01/why-the-darktrace-share-price-fell-40-in-november/
Motley Fool - Why the Darktrace share price fell 40% in November.