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Challenger Acquisitions chairman quits after just 358 days as company admits its in real trouble

By Tom Winnifrith | Friday 6 January 2017

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.

Cynical Bear is probably onto his second bottle of ouzo by now thanks to today's news from Challenger Acquisitions (CHAL). Mr Bear has warned you time and time again about the numerous red flags associated with this company and indeed made it one of his two sells of the year with a target price of 0p HERE. And today we learned that after just 358 days with the company the chairman John Le Poidevin has resigned. It gets better if you are Mr Bear. Have another ouzo.

Challenger uses the word "retired" but I think we know this is an unplanned resignation. I hate it when companies tried to blur the issue with the use of incorrect words. Pro tem Mark Gustafson, the disaster of a CEO will act as chairman as well. That is not exactly a plus point.

But at least the statement contains some honest words:

Mr Le Poidevin joined as Non-Executive Chairman to help position the Company for growth following the commencement of contracts for Giant Observation Wheels. The on-going delays in starting these contracts are the key reason for his retirement from the Board.


I should cocoa. The company has no cash and no revenues and admits that there is still progress on getting financing for a second wheel (Jakarta) while the New York White Elephant will not open for another two years.

I bet you that the full resignation letter is even more explicit in its wording and when this company goes bust I shall put in a bit to the receiver to buy it, just for fun. Or perhaps Gustafson might, in the interests of transparency, publish it in full?
Either way, Cynical's sell stance and target price seem reasonable enough to me.

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