The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
bakky ,
listen ... if you look at the last few years accounts we see that TH/ MS have form in both 2016 ( i think it was $568k that was subsequently admitted as falsely accounted for and over $1.7M in 2019 whixh were restated . the 2017s contained $3.4 million of sales that were trumpeted and recorded as revenue and profit and then subsequently written off as bad debt ( my ass ). so 2016/2017 and 2019 all dodgy ... any bets on 2018 ?
a US securities fraud claim is one of our considerations , not sure if UK holders could participate but i can soon find out .
any interested parties can find my email out ( first name (@) last name .com
now bakky that’s an interesting twist .
our action is currently focussed on fraudulent warranties at the point of the icm deal.
clearly lots of people decided to buy / sell or hold ( incl the icm vendors ) based on the managements public statements and also the misleading accounts provided to the markets ... hmmmm
YHAL,
I wish..... would be all so easy then ....
TF is a 100% straight player and he knows who is paying his wages...
Totally ethical in my 10 years of working with him.
BB, appreciate your bluntness, at least we know where we stand.
I am big enough and ugly enough to be called out...
but all the bloviating, whether is from me or you on this case isn't going to change the facts.
Im happy to prosecute those facts to seek redress for me and my colleagues and foot the bill for that win or lose.
I understand the pain of the other shareholders for sure, but I believe I have a path to redress for myself and the ICM Vendors and am choosing to take that path.
Understood you dont like how I operate so I will refrain from engaging with you as there is little point it seems.
All the best, have a good weekend.
Hey Bakky,
I think my attorney referred to it as "a f**k off" letter.. Were are ploughing on this end... have extended enough Olive branches.
Judging by the comments of some here it seems that we are to expect liars and cheats as Executives and thats ok and be damned those who get fooled by them. I would respectfully suggest that every PI and II has also been fooled over the last 4 years, or so it seems. Not sure who here, relying on the statements by the company and its executives is in the black on their investment? Any? I wouldn't think many, personally...
yes , picking pop the phone and having a "without prejudice" conversation for a start would be a good place... ignore, rebuff or calling bluffs, possibly not such a good place. if the non execs still think there is no case to answer after just seen g a) the numbers for the last 3 years and b) what TH/MS did in 2019 alone, then I hope they have taken the time to ask TF/BD to look at 2017/2018 very closely. For the record TF did most of the DD for ICM so he knows exactly what was raised by us and what the answers were we got and now he is on the "other side" can see exactly where to look for the bodies that are buried. just saying....
Toby Hall, MMX CEO was quoted, "The exceptional take-up we are seeing of .vip is being achieved without using a freemium strategy or equivalent to boost numbers -- the latest surge coming from standard name registrations bought through the registrar channel. This bodes well for renewal rates and the long-term reputation of the domain. We very much look forward to the ongoing growth of .vip billings."
it is when it is contained in a lie and subsequently warranted.
BB,
has the company yet given an exact description of the 3 2019 offenses, leading to the restatement?
I know exactly what they are and they stink.. perhaps if the company deigned to inform its shareholders of exactly what kind of behavior the dynamic duo were up to in 2019 cooking the books, you may have a little more sympathy for my position.
just deceptive, fraudulent and scraping the barrel.
Yes BB, and thats exactly what a legal case will prove. who is and was telling the truth...
I agree with your sentiments that if the company is robust with its position, then they should give this "opportunistic chancer" (me), short shrift, which indeed is what they have done so far.... Problem is , I dont go away that easy.. The truth will out in the fullness of time and as I have already stated I will happily pick up the bill if wrong...
can I say fairer than that?
Bakky,
haven't asked for anything yet, just to talk openly, pragmatically and honestly about it.
Admitting the prior problem is actually needed to be able to re-set.
for anyone who knows me , including TF and I would have hoped the chairman , they would realize that its the embarrassment and damage for the others , who can lesser afford it than me, that is the bigger thing than outright dollars in restitution. Restitution is required and im sure the law provides math for working that out.
If that ends up in the form of more shares rather than $$ , then yes to help TF and everyone else get the SP up is then in my and others interest and would provide far greater vindication than just skulking off with some extra $$$.
Its clear this business needs some straight talking and honest appraisal in a no nonsense way. Im sure TF can provide that in Spades and would be happy to help.
The longer this goes down a rabbit hole, positions get fixed, dirty washing gets outed the harder it gets to end up with something "amicable" and easy.
I took almost 150 million shares in this business, was the largest holder at the time, left the management to get on a run it , tried to support them (mistakes in know), held the shares for a decent time. Lost substantial value in them. Fortunately , I won't go hungry as a result of it and have the time, money and inclination to seek acknowledgment of what happened and some redress for it.
I understand that in itself may be contrary to your short term interests , but until and unless this business comes clean and straightens itself out by jettisoning all the "fake" deals and registrations, this company is going nowhere and will never get sold at a fair price.
To quote Shakespeare for the second time in a week (let slip the dogs of war " being the first) , the company has become hoist on its own Petard, IMHO
Rykan,
1) I didn't say the other offers were for more (at the time)- some may have turned out ending up for much more....
2) yes , a poor decision... duped... hence reason can't let it lie... grates to have let the likes of TH/MS "better" me... as others have mentioned ....ego...
3) a good liar , esp when draped in the guise of being CEO of a public company and the lies backed up with warranties... gives some degree of protection from being duped, or more accurately a method of redress after the event.
4) I have stated before was a mistake and I take my lumps for making it.
Scotty,
to reply to your post of 13.51 today...
The mature domain business iS so attractive BECAUSE the very nature of it is forecastable and predictable , the annuity nature of it...
Below let me set out a HYPOTHETICAL set of numbers, which may or may not be close to the truth here to show what expectations and losses, (for all ) may be in a hypothetical situation, if it were not for the fraudulent misrepresentation of one of the hypothetical participants...
Company A is wishing to sell.
Company A has several offers including all cash and some part cash part shares from various public companies.
Company A decides to sell to company B, a public company with 700 million shares.
At the time the SP for company B is circa 8.5p.
The public markets and private transactions for "regular" domain name registries indicate P/E of 15X EBITDA
Company A enters into a transaction with company B subject to representations and warranties from both sides.
Both sides Agree that the pro forma business 12-18 months down the line should look like
Valuation = 15x A+B+C+D
where
A= Company As EBITDA
B= Company B,s EBITDA
C= savings achieved by reducing staff count and O/H post acquisition using economies of scale
D= Extra EBITDA achieve through organic growth and/or introduction of new products
at the point of the transaction the following are the initial estimates
A= 4
B=4
c)=2
D)=1
Company A takes part cash and 225 M shares in Company B leaving company B with 925 million shares.
Therefore the pro forma Valuation is (4+4+2+1)X 15 = $165M USD = 122M GBP / 925 million shares= 13.5p per share.
The value of Company A's Shareholding goes from 225MX8.5p to 225X13.5p = an increase of 11.25 MM GBP.
As it turns out, Company B had lied to Company A and misled them on several matters that were raised in Due Diligence which led to the line item B ending up to be -3 MM not +4MM.
so the calculation ends up as 4-3+2+1= $4MMX15(P/E)= $60MM USD= 45MM GBP /925MM shares = 4.8p a share.
Drk,
just had a conf call with the legal team this end and am told the notice to the MMX legal team should be delivered Monday.
yes sorry ...
underestimated you
my bad
company only
“ men of straw “
they are for MMx to deal with
and yes had no deal happened ...
strip out say $2 MM ebitda for half year if icm in 2018 and i would say with AB and removal of all icm staff for 2019 probably $7M ebitda for 2019 and how would the numbers look ?
Scotty ,
yes 100% and stateside would likely be a class action suit being prepared as we speak
blimey bakky , you are exceeding my expectations of your perception here .
totally spot on , DD raised red flags , lies were given , but warranties taken as belts and braces . we contend the warranties were fraudulent . the subsequent write offs and business underperformance on the mmx side made that clear and then the TH/ MS 3x fraud uncovered for 2019 showed they had repeat and ongoing “ form “ for it . time to peel back the onion
balky , again yes 100% . we had others offers at the time
100 % spot on Bakky ...