Article17 Sep 2014 14:18
I think that it is now 100% clear that Naibu (NBU) is a fraud. It is only a matter of time before it goes to 0p or is booted off the AIM Casino. But where did it come from and is it unique? Meet Zedex Capital. What follows will shock you. It says so much about how corrupt AIM and the City advisors working on it have become. It is a scandal.
Zedex is not regulated by the FCA but acts in London and says of itself:
Zedex Capital is dedicated to bringing quality Chinese companies to the London Stock Exchange, in particular the Alternative Investment Market (AIM). Our core business is grooming high-growth and sufficient-size Chinese companies to ensure that their business strategy, financial soundness, and corporate governance are adequate for an Initial Public Offering (IPO), so that the transaction can be executed smoothly and swiftly once all professional advisers are on board.
In return for this grooming of pert young companies it gets shares in the companies which it dumps as soon as the company has IPO’d. Very helpfully it has published on its website a list of its AIM IPOs. The record is truly dire:
Company
AIM Casino Admission Date
Price on Admission
AIM Casino Departure Date
Price on Departure/today
Net Loss
Advisers (Nomad, PR)
Asian Citrus
Aug 05
112p
N/A
14.125p
87%
Cantor Fitz, Weber Shandwick
EBT Mobile
Sep 05
17p
Dec 08
6p
65%
Panmure Gordon, Weber Shandwick
Prosperity Mineral
May 06
148p
Sep 13
130p
12%
Daniel Stewart, Citigate
China Biodiesel
June 06
85p
Jul 10
16.5p
81%
Evolution
China Medstar
Oct 06
78p
Jul 10
62p
21%
Evolution
China Medical System
June 07
138p
Dec 10
Delist to HK
NA
Cantor Fitz
BlueStar SecuTech
June 07
48p
Nov 13
2.5p
95%
Westhouse. Tavistock
Asia Distribution
Nov 07
Not available
Jan 09
52.9p
NA
Evolution, City Profile
Natsun
Dec 07
122p
Mar 09
80p
34%
Evolution
China Eastsea
Jan 08
24.5p
Mar 10
10p
59%
Cantor Fitz
Asia Ceramics
Sep 10
66p
NA
46.5p
30%
WH Ireland
Naibu
Apr 12
124p
NA
22.5p
82%
Daniel Stewart, Abchurch
China Chaintek
Aug 12
160p
NA
79.5p
50%
Daniel Stewart, Abchurch
Camkids
Dec 12
88p
NA
43p
51%
AVERAGE
56%
There are two companies removed from this – one which moved to HK and one where I cannot find the admission price but an average loss on the other 12 of 56% is disgraceful. Actually it is worse because some stocks were pumped up post IPO.
The pattern is always the same. At the IPO new money is raised from stupid British investors for the Chinese companies which often appear to be domiciled in the BVI and similar jurisdictions. Savvy Chinese investors giving all sorts of plausible excuses sell a few. Zedex bails as soon as t