Member Info for Phrontist

Thank you jadwales. The SFO issue must be a pain for Quindell Management, and their approach of 'we take as long as we need, or want' is quite damaging to a business. A few months ago I stupidly believed that their requests and investigations would be resolved by now. The reason for believing in a quick result is based on poor old Quindell Management having just completed the PwC Investigation and a Full 2015 Audit. All necessary paperwork must have still been warm when the SFO knocked on the door. My hope for a quicker-than-normal solution with SFO is also based on The Right Honourable Lord Howard, a Senior Non-Executive Director of Quindell. He has experience of Government Department machinations that must be second-to-none. ATB, P

Mel PSD brought Quindell to its knees and now its bringing Slater & Gordon to their knees. Why? A gross underestimation of the finance required to handle cases taking longer than planned, and with no guarantee of a pay-out at the end. This is a problem with pay-if-you-win legal practice. When you're losing you just pour in more money to try and win. This type of USA-originated Legal Practice was actually against the Law in the UK until fairly recently, it is a whole new ballgame. It seems to me to be strange that if you ask a solicitor 'what percentage do you win?' he replies 50% over time. But if you ask PSD supporters they assume 100% over time. Cuckoo land. No one in the UK is going to finance such a dodgy business strategy. I for one trust David Currie's instincts on the decision to sell PSD, very smart move. As some pundits commenting on Quindell last year said, 'your business is built on sand .....'. Not any more. ATB, P

Mel I think what happened is this. Coming into 2014, growth of PSD was considerable. RT used this information to inform the public of impending massive growth in Sales and Profits for 2014. SP would remain high throughout the year, even continue to rise well over £6/share. Quindell would issue a second Rights Issue in Summer 2014 to continue financing the growth in business. Company would reach 2015 with good set of Books. SP holds good, everyone is happy. Risky way of doing business, but a successful outcome brushes that under the carpet. Why did this fail? Gotham City 'Report'. After that saga there was no chance Quindell could survive. As for your belief there are people out there that would lend such vast amounts of cash to a company that had covered up the (full) truth, that is for the birds my friend. Some may speculate that Gotham and RT deserve each other and should crash to earth and die. Unfortunately, like most wars, the innocent and loyal shareholders were the ones that suffered. Gotham and RT both seem to have got rich on it. They have our money. ATB, P

jadwales Personally, I would like to see a Forensic Accountant produce a Report with all of RT's share ownerships tracked from Day One of this business starting, even going back to the so called 'golf club'. It should be comparatively easy to do since the Share Registrar will have that information. I have no idea how to get hold of it. It is possible that the SFO are at this very minute putting a bit of time into this question for their own deliberations. I hope that they issue a public report for us all to consider. Last November he was accused of using his shareholding as a lever for cash through some USA company, but I have no idea what actually happened. However, the SP did drop to under 30p at one stage and he may have taken advantage of that opportunity. I have no idea, I would like to know. A shareholder is entitled to know what a Director is doing regarding the companies share transactions. Stock Ex Law. I have suggested herein in the past that IF RT has transgressed then his punishment should be forfeitsure of his Quindell shareholding. IMHO that would give an instant 10% to 20% SP rise. If it transpires that RT has done nothing wrong then I sincerely apologise. Muddy waters need clearing to see the tru light. ATB, P

Borders, our Posts crossed in the Ether. I somehow knew you would appear. I truly believe that SGH is a good share to buy NOW, clever in hindsight. But clearly it wasn't a good share to buy four months ago, when somel thought that they had 'such a good deal on PSD from Quindell'. They will be a great share to own in two years time, if you buy a few shares now. But share owners will not be so happy if they owned their shares prior to Q2/2015. It would have taken over two years to go from A$6.5 to (guess) A$10 ish. Quindell isn't the only company that screws up. ATB, P

Borders I was going to buy some SGH but found to my surprise that HSBC Invest Direct do not support dealing on ASX. Now a few months on I quietly whisper to myself 'thank you HSBC for being so restrictive'. Current press releases on SGH and their Financial Staff situation clearly indicate that they are heamoraging cash, big time. 2015 Quindell style, even. Which goes to prove (conclusively IMHO) that David Currie, past Quindell Acting Chairman, current Quindell Non-Exec Director, made a correct move in managing the sale of our Legal Services Division. And saved this company from a certain SP=£0 situation. ATB, P

jadwales I am confident that our new BoD is strong and suitable to handle any and all outstanding issues on Quindell. It just takes time, with many issues not being directly resolvable by them (eg SFO). This is the stuff that ambitious Dirtectors make their reputations on. They will succeed. ATB, P

Mullins58, a complete waste of time and money at least until conclusion on the SFO investigation. ATB, P

There is a possible further reason for SP reluctance to rise. On this very LSE Site it says Rob Terry still owns 46,900,000 shares in Quindell. Almost 47 million shares!!! That is over 10% of the company. Obviously he won't do anything to damage the business on purpose but he has shown the capacity to damage a business by selfish actions. II's will not like this. I watch IMTK and DAN every day, as well as Quindell. The founder of IMTK says he has never had a (proper?) converstaion with RT even though RT has moved in on a substantial amount of his business. Has RT moved his shares around so that his 47mil dosen't show? It is a dead cert that when he started issuing his Reports and the like on Quindell a few months ago, that he had plans on getting back in, even a funded takeover using Quob. A dominant dodgy shareholder always holds the SP down. ATB, P

jadwales, I think the five reasons I have just given. Put yourself in the shoes of an employee fund manager. The top requirement is to invest a clients funds safely. All other requirements are subsidiary to this eg capital growth, good dividends, global ambitions, whatever. Safety comes first. You don't get fired for a 5% or even 10% drop in a year, but £2.50 down to £1.00 over the last year or so will get you fired, or at least moved to Head of Tea Making. Owning Quindell shares is likely to have got a lot of people fired, to be blunt. Quindell has succeeded in overcoming a near certain collapse, not unusual on AIM. That is good for us PI's but not good enough for Prodessional II's. The company has to resolve all five issues I listed below to clear the road for growing II take up. Full Stop. Once this has been achieved it is likely the SP will rocket, since the management have not been standing still for the last four months. I am hoping for a spectacular revival, but it does depend (in the end) on a substantial Sales Order Book, and we have no information on this or the respective Sales Directors actual potential client names for new business over the next year. It would not be normal for a company to issue such information (except Rob Terry) and so we have to wait. There will be a moment when owners of Quindell shares will get up one morning, look at the SP on-line and scream with joy. When will that day be? I wish I knew. ATB, P

One area politicians really annoy me is that at every election all parties are bleating 'oh we love business and will reduce red tape blah blah blah'. But red tape get worse as time passes. More government department incompetence, poor decisions, long timescales, no progress reports, etc. What has been done about the detrimental effects of shorting? Nothing. Not even a Report or White Paper. I won't even start on the shoddy Cons way of supporting the steel industry. ATB, P

Apologies addicknt, I believe you are correct SFO - Serious Fraud Office. It is a shame they cannot carry out their business in a more timely fashion. Or provide reasons as to why delays are occurring. ATB, P

An article in Motley Fool yesterday says: 'Shares of Slater & Gordon Limited (ASX: SGH) are trading lower today after the legal firm announced that its current chief financial officer (CFO), Mr. Wayne Brown, would leave the business. Brown has been with the group for 12 years and Slater & Gordon recognised the “significant contribution” he has made in that time. However, his departure also follows a tumultuous period for the group in which its shares have shed more than 65% of their market value. Indeed, Slater & Gordon has been the subject of enormous controversy over the last four months or so. It has been the subject of a major investigation by the Australian Securities and Investments Commission (ACCC) – while many have also questioned its growth tactics and accounting methods. Although the group’s update didn’t specifically reference these issues, it’s possible that investors are tying all the concerns together and once again questioning the viability in holding the group’s shares. Personally, I think it’s a risky investment proposition even today and won’t be tempted to buy shares just yet.' Plus an article in: http://www.lawyersweekly.com.au/appointments/17402-slater-and-gordon-cfo-departs gives further information on a reorganisation at the top. ATB, P

It is easy to be positive about Quindell these days with a strong position in telematics, a substantial sum of money in the bank and more cash coming in over 18 months for NIHL from a credible source. That should put the SP anywhere between £1.20 and £1.50. But potential investors that don't yet own Quindell shares will look at these points as hurdles to jump, with the posibility of at least one fall: 1) No NIHL cash has yet been paid and until the first payment comes through this can be regarded as a risk. Also, 'unbeleivers' can point at SGH and say why is their share price still hovering at half its value four months ago? 2) The Capital Refund issue is becoming a thorn in the side of Quindell partly because the BoD have not given real evidence about timescale and amount. If they said a £1/share and by end 2015 that would be something but any wording provided has a degree of ambiguity about it. 3) Nothing has yet been provided about our estimed subsidiaries performance forecast. If sales and profits were reasonable then something could be said to steady the waters of speculation, but saying nothing is causing the dark side of speculation to keep popping up its ugly head. 4) If and when the Capital Refund occurs then many possible investors may then say Quindell is underfinanced and not financially equipped to handle the subsidiaries into growth and profitability. Back to Square One, a fire sale. 5) The continued FSA investigation comes up in EVERY publication article out there. Whilst many (incl me) are confident the result will not harm Quindell, many possible investors will say it is a big unquantified risk. On balance, this is why the SP hovers around a £1. Someone suggested a Court Hearing on (2) will occur on 2nd Dec, but I have not heard anything official on this. It may result in a decision on the day, or it may result in a deferred decision until an SFO conclusion, due its unknown financial implications. Only time will tell as each of these issues are resolved. Meanwhile, I am sure that are excellent BoD are quietly getting on with, at least, resolving (3) which is where the companies future lies. Quindell has to PROVE that it is moving into becoming a well run business and to achieve that ALL of the above has to be resolved. My bet is that it will all be resolved favourably but it will take time. Anyone arguing against this sentiment is probably a shorter in waiting. ATB, P