It was slung off the AIM Cesspit after just a few months back in 2015 but not before Roland “Fatty “ Cornish, London’s worst Nomad, had made a killing from listing fees and cashing in warrants and dumping shares. Now the company has gone bust … readers of this website cannot say that they were not warned that this would end in tears.
At the last AGM of Naibu (NBU) before it was booted off the AIM casino I attended its AGM, held at the offices of its Nomad Daniel Stewart, and accused the company of fraud. Only the NEDs were present - Chinese executive directors failed to show. As I asked about a loan to the CEO’s mum that had not been repaid, the NEDs said they were unaware of this. I pointed out where the loan was referenced in the annual report and the NEDs said they would go away and investigate. They did not. Only when they stopped getting paid did these useless upper class twits start to ask questions. Wind forward to today and it is time to shift the blame.
This was part of the opening ceremony at UK Investor Show. As you can see myself and Lucy Wray were naturals. The booze was, for the record, finest English Chapel Down not that French muck. Poor Johnny Hon found it a bit harder.
I rather wondered what Dr Hon of The Global Group would say about China fraud on AIM but what he said was pretty explosive, exposing those within the City who quite deliberately and systematically broke Chinese rules to allow frauds to float in London. This was great stuff because the scandal is that those who did this still operate in the City today. I make a cameo appearance at the end. Enjoy.
Hello Share Mashers. Wow! What a Global Group UK Investor Show that was! I’ve never seen so many folks at any show anywhere. And if audience reaction is any guide, they loved every second of this bigger and better share spectacular, organised by Lucy Wray’s talented team. But for those who couldn’t make it, let me report on what you missed.
When Gate Ventures and Johnny Hon first told Reach4Entertainment (R4E) and its useless, money grabbing, good for nothing, gutter dwelling Nomad and broker Allenby that it wanted to sell its 23% of the company the shares were well over 2p. With the stock placed they are now 1.55p-1.6p. Well done Allenby you useless clots. Enjoy spending your £170,000 commission.
Having previously warned of a potential breach of “monitoring covenants” in the third quarter, Reach4Entertainment (R4E) “has now determined that the quarterly monitoring covenants for the third quarter of this year have been breached and has notified PNC”. However…
Seeing a 1:52pm “Trading Update” announcement didn’t inspire confidence and indeed the announcement from media and entertainment-focused Reach4Entertainment (R4E) includes “the directors anticipate that EBITDA for the 12 months to 31 December 2017 will be below market expectations”. HOWEVER…
If you had to bet the ranch on one share listed in London what would it be? I guess most of us would go for a FTSE 100 stock: Tesco, GlaxoSmithKline or maybe Shell. For the man known as Britain's Buffett, Nigel Wray, the answer is not a blue chip but a small cap. For that is how Wray has made his fortune taking large stakes in smaller companies such as Domino's Pizza when no-one had heard of them.
New York and London theatre and entertainment media company, Reach4Entertainment (R4E) has announced results from a “milestone” 2015 and is now “confident that the company has a solid platform from which to progress in the coming years”.
Shares in R4E (R4E) have raced ahead to 2,2-2.25p on news that Gate Ventures, the vehicle of controversial entrepreneur Johnny Hon has taken its holding up to 17%. No make that 18%, the TR1's come thick and fast.
I start with more news on frigana cutting. I am a sweaty wreck after a day of mega slashing as I "take it out" on various folks in the City. Then I cover Asian Citrus (ACHL), Jiasen (JSI) and Taihua (TAIH) before I move onto Johnny Hon and R4E (R4E) then the scams and scum at Golden Saint Resources (GSR) - why won't PR fecking genius Steffi tell us about her shares? Then it is onto doomed Outsourcery (OUT) and then, as we expect more news tonight on Uramin, I ask a few questions about Port Erin (PEBI) another vehicle of my friend Jim Mellon. Oh and there is bad news for a company trying hard to bring jobs and wealth to the grim Northern welfare safaris, DX Group (DX). Moral of the story, let them rot, stick to doing business in the hard working South.
Hong Kong based businessman Johnny Hon is a controversial chap. My interview with him at UK Investor covered the Gate Ventures AIM fiasco - as you can see HERE - but if he wants to build up a stake in a business he can buy a material stake - as we lucky shareholders have seen with R4E (R4E) - and now it appears that he has turned his attention to the MX Oil (MXO) pantomime.
In this interview I put controversial Mr Hon of Gate Ventures (GATE) fame on the spot about the Gate fiasco on AIM, the Chinese economy ( a bubble?) and about China fraud on AIM. Enjoy
It was announced this week that Gate Ventures, the totally dodgy company owned by Johnny Hon who is a total charlatan, has increased its stake in *Reach4Entertainment (R4E) by 5 million shares to 57.5 million shares - 12.12% of the equity. We think Hon is a total chancer - and that is being kind - but have noted before that him hoovering up loose stock will only accelerate the re-rating.
We have covered ISDX-listed China Sports Development (CSDP) a few times here on ShareProphets already (see HERE). The company has been suspended from trading since 9 July 2015 and as far as I can make out, the shares should have been booted off ISDX by now. Yet despite that, despite having had no Corporate Adviser signing off on its RNSs since 5 June 2015 (and we STILL do not know if Beaumont Cornish has resigned) and despite its interims to June 2015 showing negative assets (which were also the net current assets) to the tune of almost £12,000, just £1,530 of cash at period end but cashburn during the half year of almost £18,000 – and we are now more than six months on – yes, despite all that it was announced yesterday that two new directors had been appointed. What on earth is that all about?!!
There is no doubt that Reach4Entertainment (R4E) has been a total dog of an investment for many a year. But it goes into 2016 in great shape. We have bought shares in the market at 1.4p and 1.45p. I reckon the shares are going to 3.5-4.5p within two years and as such this is my 3rd tip of the year.
This may seem like madness but we increased our holding in Reach4Entertainment (R4E) last week by 50% with another market purchase becuase, not despite of, the way that conman Johnny Hon of Gate Ventures (GATE) infamy has got involved.
Salvador Dali would have struggled to come up with anything more surreal than the ISDX farce that is China Sports Development (CSDP). On Tuesday 8 Dec (at no-one-is-watching o’clock, natch) it was announced that in had come Mr Pui Lan Patrick Tsang as a director with immediate effect. Companies listed on ISDX have to have a Corporate Adviser (the equivalent of a Nomad on AIM). But this RNS was not signed off by one, yet there has been no announcement of the resignation of our very good friends at Beaumont Cornish.
It has just been announced that Gate Ventures - the fraud booted off AIM after just four months earlier this year - has bought 14.5 million shares in Reach4Emtertainment (R4E) taking its stake to just above 3%. It could have been worse.
Lucian Miers did a superb piece HERE which looked at some of the people involved in the ShareProphets AIM-China Filthy Forty poster boy, Gate Ventures (GATE). Gate, you may remember, had an extraordinarily short-lived existence on AIM in that it was given the order of the boot after even Beaumont Cornish found it all too much to represent this outfit as Nomad, and no-one else would either.
The prohibition in China of Multi Level Marketing (MLM) schemes is one of the few areas where this fraud friendly nation is less tolerant of malpractice than the usually more draconian climate prevailing in the US where MLM seems to thrive and survive. Until recently this was not a big issue as in many instances the law against MLM in China was simply ignored in practice, with few consequences for the perpetrators.
I have already demonstrated how believers in Johnny Hon’s China pyramid scheme Gatewang are being duped into buying shares in AIM scam Gate Ventures HERE. Sleazy Tory MP Tony Baldry is a non-exec at Gatewang and happily hands out bogus Knighthoods to its execs at House of Commons receptions he arranges (see HERE). But now I show how Hon tries to create the impression that Gatewang is endorsed by the Royal family but by someone even more impressive, Fergie. Not the toe sucker but the football legend.
In the long run a share price will reflect the NPV of future cashflows of a given company. In the short term it can go anywhere. Stocks can whizz higher purely based on aggressive stock promotion, .e ramping. So who would your ramping dream team be? As I sit having a coffee waiting for my car to get an MOT I have put together my own starting five.
Just when you thought that the AIM casino could not plunge to new depths I now bring you a full expose of the biggest fraud of the year, Gate Ventures (GATE). It involves a series of characters all of whom have been involved in AIM listed frauds before. Shares in Gate must be suspended at once pending a full stewards.
It is easy to see understand why the name of colourful entrepreneur Johnny Hon is conspicuous by its absence in the AIM admission document of GATE Ventures (GATE). Practically everything that he has been involved in (Canton Property, Global Education, Global Entertainment, RG Group to name four) has been an unmitigated disaster. The problem is that it is a legal requirement under the FCA Disclosure and Transparency rules and the flagrant breach of such rules should not be tolerated, even by a body as supine as the AIM Regulation team.
It is little wonder that AIM listed China scam Gate Ventures (GATE) chose not to reveal the identities of those behind the concert parties that control 87% of its stock in its IPO admission document. Nevertheless the fingerprints of “colourful” entrepreneur Dr Johnny Hon appear to be all over it.