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By Tom Winnifrith | Thursday 6 August 2015
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
When are you going to publish the Quindell book? I was asked this numerous times yesterday and having chatted to the pizza hardman Darren Atwater, we think that the answer is October. But what to call it?
The aim is to put together all of the investigations on this website and to add in new material arising from yesterday’s admissions by Quindell plus some previously unpublished material of my own to tell the complete story of the fraud from the months leading up to its IPO in April 2011 to the unravel following Rob Terry’s departure. I will name the guilty men. I will point out how the frauds were all too apparent and who in the City ignored them.
From this sorry tale few emerge with any credit. The FRC has shown itself to be a proactive regulator and offers a start contrast to the clowns at the FCA and AIM Regulation who were given hard evidence of proven frauds and did nothing. I shall reveal my correspondence with those regulators demonstrating how they were asleep at the wheel. And then there are the advisers Cenkos, Cannacord and Daniel Stewart. All the guilty men will be named.
But what title should I use: “Quindell the stockmarket fraud of the Century: the truth revealed” is an early runner.
It is the biggest London stockmarket fraud of this century but maybe you have a better title. Suggestions in the comments section below. A winning title gets an autographed copy as we will publish in paperback and kindle for sale by – I hope – late October. With this project at hand, flip flop really has to manage on this web site alone. I need to be 100% offline as of now to get this done and deal with all thr other challenges of life.
A final word on Daniel Stewart (DAN). Its shares would have collapsed by even more yesterday had Rob Terry’s Quob Park not been buying the stocks. But Quob is almost at 10% so cannot buy more under FCA rules. It is inconceivable that the FCA would permit Terry to go over 10% even if he resubmitted an application.
Fair value for these shares is c0.25p based on its paltry free cash and lack of cash generation. Rob Terry may try to ramp the shares by publishing new price targets of 4.2p or 10p or whatever 2+2 can equal today but after yesterday’s revelations only the truly insane will believe a word he says. Gravity will out and the shares will continue to slide.
But it gets worse. The statements yesterday make it clear that the IPO document for Quindell was wholly misleading and that serious frauds took place in 2011. Who was Quindell’s Nomad in 2011 and which Nomad prepared that IPO document? Step forward Daniel Stewart. At the very least its extreme negligence back in 2011 is likely to see it being pulled into all sorts of investigations. But it could get worse.
One City adviser put it to me last night that the SFO will may see Rob Terry's investment into Daniel Stewart in 2015 as no coincidence – one good turn deserves another. Might the SFO thus look at a conspiracy to defraud charge that would also involve Daniel Stewart? I do not know the answer to that but this could well get very messy indeed for all concerned. If I was Daniel Stewart CEO Peter Shea I would not be sleeping comfortably tonight.
Daniel Stewart raised money for itself at 3.35p on 25 June. Here we are five weeks later and the shares are 1.65p to sell. Those who took up that placing must surely by now be asking a few questions. As the shares continue to tumble as they surely will Mr Shea may be suffering ever more nights of insomnia. The shares are a stonking sell – target price 0.25p (for starters)
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