By Tom Winnifrith | Wednesday 14 December 2016
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.
Here we go again. Wicked and evil bears launch an attack on a great British company and pompous arse Roger Lawson of ShareSoc insists he knows better, just like he did with Globo and Blinkx, and attacks the bears. The pompous and disgraced share ramper opines on his blog with three readers:
Electronic payment company Paysafe (PAYS) has come under attack today by a blogging company named Spotlight Research. The share price fell by as much as 38% during the day and finished 18% down at 305p. Spotlight admit they may be shorting the shares.
The 50+ page document they have published makes various allegations but the key ones are that Paysafe have been enabling illegal gambling and money laundering, particularly in China, India and other Far East countries. They allege a lot of the money has been funnelled through Bet365 who they say are probably Paysafe's largest customer.
Now this writer just happens to know a fair bit about this market sector being a former director of a company that provided payment services to gaming companies.
At which point Lawson yacks on ad nauseam. Of course he knows best. Remember when he told Paul Scott and me that we were talking shite about Globo which he owned and was ramping? Remember when he told Ben Edelman and me that we were talking rubbish on blinkx and that he was the expert on the stock, which he owned but did not declare he owned as he ramped away? Whatever.
It is Lawson's conclusion that really sucks:
But it is unfortunate that such allegations are published by shorters rather than the facts being reported to the regulatory authorities in the UK and China so that a more considered review of their veracity can be made first. I have commented negatively in the past on my view of bloggers who publish allegations in jurisdictions that protects them from legal action if they turn out to be wrong, or who do not check their facts with the company they are commenting on first. My views on the dubious nature of some of these campaigns have not changed. The financial incentives created by the fast spread of negative comment on the internet is something I think the Financial Conduct Authority should look at and try to regulate. Perhaps that is something to add to a submission on the FCA's Future Mission that they are currently consulting upon.
If Roger was not so busy investing in frauds to actually try busting a few he'd know that reporting hard evidence of fraud to the FCA or AIM Regulation is just a waste of time. You can give them cast iron evidence ad they do nothing as we saw with Quindell or as I saw with 3DM back in 2005. They are useless.
If the regulators are useless that means that bears - ie folks who see a fraud and go short and then expose the fraud or the overvaluation - become the only de facto regulators in town. Of course they are not. There is me and I don't go short. But I am a bit unusual, basically there is a whole IR industry there to ramp shares good and bad and even frauds. There are also useful idiots like Lawson who ramp away free of charge. Bears are the only counterweight to that wall of buying pressure.
What the FCA should be looking at is why when time and again it is presented with evidence of fraud and market abuse on the London markets it does sweet FA. And that - rather than wicked bears - is what screws investors.
I took Quindell to a very senior Tory MP. Oh sod it..it was Sir (now Lord) George Young, the brother of my late step mother. I presented him with evidence. He basically told me to sod off reassuring me that the FCA knew what they were doing and would ensure everything was handled correctly. One member of the establishment has faith in another failed institution run by over-paid establishment figures. And while the 1% get their titles and their vast salaries and pensions, we ordinary folks get screwed by a failed system funded by our taxes.
Lawson hobnobs with MPs and presents his dreary views to Parliament asking for taxpayer subsidies to fund his worthless existence as he is part of that establishment. It is an establishment that is failing ordinary investors. The fact that Lawson wants to clamp down on bears who expose fraud and bloggers who quite rightly want to avoid the UK's appalling libel laws rather than bash the FCA to do something about fraud, says it all. When you are in "the club" piss out on the poor folks outside not on your fellow club members inside.
Given Lawson's track record of backing the fraudsters and his overt hostility to those of us who do not play along with the establishment party line, I'd assume Paysafe is a good short bet. The fact is that shorters do tend to do their homework better than bulls. And certainly better than Roger Lawson.
Never miss a story.
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