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Quenron – Another Hot Air RNS - this time in Canada

By Tom Winnifrith | Tuesday 21 October 2014


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.


Quindell (QPP) has announced what it believes to be a major deal. Oddly certain Bulletin board morons who have in the past been leaked confidential lawyer’s letters by Quenron have been pre-announcing this for days making a mockery of AIM rules re the release of supposedly price sensitive information. But that is the least of Quindell’s crimes.

The announcement states that: a “major insurer” has “contracted with Quindell to provide their (sic) insurance customers with its market-leading telematics technology solution and associated services, exclusively for five years. The Major Insurer represents over three million customers, 1,700 brokers and has a significant market share of the Canadian automobile insurance market. Over an initial period of five years, the Major Insurer will target to become a strong market leader in the development and delivery of telematics-based insurance solutions, and subject to the achievement of key milestones, committing to a goal of 120,000 telematics customers.


Where does one start? On a point of grammar the major insurer is a singular not a plural so it should be “its” not “their” – I’ll whizz Rob Terry an invoice for £150 + VAT for the grammar lesson and he should start accruing that cost right now.

Joking aside, this is a joke. The words “major insurer” are mentioned eleven times in the release but why is the partner being so shy in revealing its identity. There is no shame in linking up with Quenron is there? So what is this worth to Quenron?

120,000 customers sounds a large number but this is not saying that there is an order for 120,000 customers. If is committing to a target if certain milestones are passed. I am committing to a target of shagging Cheryl Cole (or whatever she is called until her next divorce) subject to certain milestones being passed including her not being quite so rude to that charming Mr Cowell. But will I actually shag Cheryl? Somehow I doubt it but I am committing to that target.

So what about the cash implications? Er…no mention of the terms of the deal or the cashflow implications. As we know Quenron has shifted back the payroll date and has an appalling track record of paying its suppliers because it faces a major cash crunch. In the words of Gotham City “it is behaving as if it is on the verge of bankruptcy”. It had to shelve the RAC deal because it could not afford the upfront costs of installing black boxes. So how will it afford the upfront costs here? There is no detail given.

Oddly this is not Quenron’s first such deal in Canada. It announced a raft of them with big numbers in the share ramp ahead of last November’s bailout placing.  I wonder how they are going? 

I refer you to a November 8 2013 RNS:
 

Quindell Portfolio PLC, (AIM:QPP.L) the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their Related Sectors, is pleased to announce that CAA South Central Ontario (CAA SCO), has contracted with Quindell to provide their auto club members  and insurance customers with new telematics technology and services

Quindell has agreed a contract with CAA SCO on an exclusive basis for minimum period of 5 years in which the group will provide the technology for all of CAA SCO's telematics initiatives to its membership base of over 1.9 million members.

Based on a 10% to 30% telematics take-up in Canada with automobile association members, revenue potential of  C$79m to C$237m per annum.

Ends. 

CAA was set to launch in January 2014. I wonder how that is going? Calls are in.
 

This is just more hogwash from Quenron. Want a small bet that revenues from the CAA deal to date are pretty much sod all and are nowhere near the numbers touted last fall?  And now we have more hogwash from a company that has demonstrably LIED TO INVESTORS VIA RNS AND COMMITTED WHOLESALE ACCOUNTING FRAU

Sell. The target for the shares is 0p.




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More on QPP


Comments

27 comments

  1. Tom,im sure the companies involved wont call this hot air give them some credit otherwise you just come accross as bitter.This is a signed deal and hopefully will be a change of fortunes for the investors,surely this is good news for a british company employing 4000 british citizens and growing.

  2. Why does tw endlessly repeat the same historical information, I.e gotham, payroll, rac and Caa deals. The market has approved today’s news and the sp is moving upwards.

  3. KB,

    Why haven’t you come clean and declared your position in this fraud?

    Which subsidiary did you sell to Quindell? What is your position on the board?

    Come clean- as you state everything is above board, so you have nothing to worry about!

  4. Wow, there are a lot of bitter people in this world Jock,a contract win is a good sign to any business for once can you not applaud it for the sake of common folk or do you have a agenda for failure.Why wouldnt we all want folk to make money on investing,i do for sure but thats where we may differ.


  5. Juicin Drumroll

    What happened with QPP’s 8 November 2013 Canadian exclusive contract?

    http://www.quindell.com/press-releases-rns/rsa-and-gore-mutual-2

  6. No one has ever said there are not real businesses in Quindell, its just that they are not either as profitable or worth as much as claimed.


  7. Russ O'Callaghan

    Weird one this. It’s got me intrigued anyway, but I’ve a feeling I’ll end up with egg on my face after posting this up.
    It’s just that I’d have thought that, after reaching an agreement, contract or even a Memorandum of Understanding that BOTH or ALL partners would jointly announce this. It’s been flagged up that Quindell’s partner is Aviva (Canada), right? Well, I’ve spent an hour or so Googling around on Aviva’s website and I can’t find anything about this deal. Nothing.
    When I looked up things like the Reuters announcement and the Ontario insurers’ publications it just says that Cannacord Genuity “assumes” that it’s Aviva (Canada).
    Quindell haven’t (to my knowledge at least) expanded on their RNS.
    Well, it’s three o’clock over here and Ontarians are all just brushing their teeth at this moment, so I wonder if more’ll come out from that end. Odd though, innit?

  8. Aviva Canada confirmed, nice.
    Quindell would have evidenced good cash flow to win this.

    http://newswire.ca/en/story/1431240/insurance-brokers-of-association-of-ontario-applauds-telematics-contract-win-with-aviva-canada

  9. Hot air,TORONTO, Oct. 21, 2014 /CNW/ – The Insurance Brokers Association of Ontario (IBAO) is pleased with the recent announcement that a major insurer is committed to move forward with a telematics solution that supports the broker channel.

    Today, one of Canada’s largest insurers, Aviva Canada, has committed to the IBRI/Quindell Telematics Solution to execute their telematics offerings. Aviva Canada has selected Quindell as their telematics technology provider on an exclusive basis for the next five years. This move strengthens Aviva’s position as a strong supporter of the broker channel, with a desire to offer best in class insurance products, technology, and efficient broker workflow for the industry.

    At the 2013 Annual IBAO conference last year in Toronto, Ontario, IBAO and its for-profit arm, Independent Broker Resources Inc. (IBRI) proudly announced their entrance into the telematics space.

    Their objective was clear:

    “To implement an economically sustainable Telematics Solution, in conjunction with its business partners, that will support the independent Broker distribution channel and strengthen and maintain the consumer broker relationship.”

    This recent announcement supports IBAO’s objective and will go a long way to supporting the independent broker distribution channel in Ontario. “This is outstanding news for our member brokers,” said Randy Carroll, IBAO CEO. “It is no surprise that Aviva is once again leading the way and showing its support for the independent broker distribution channel. With Aviva’s leadership in strategic thinking and entrepreneurial development combined with Quindell Plc’s expertise and depth of knowledge, I am sure that our brokers will see a positive return from this strategic partnership.”

    “We share a common vision regarding the future of auto insurance,” said Greg Somerville, Chief Executive Officer, Aviva Canada. “We firmly believe that telematics and usage-based insurance solutions will benefit our customers as we are able to customize their insurance based on individual driver experience – and reward safe driving behaviour with lower premiums. This initiative is consistent with our strategy of leveraging advanced data analytics and providing digital solutions that enhance value for our customers.”

    Aviva is one of Canada’s largest property and casualty insurance companies with more than three million customers, 1,700 brokers and 9% market share of the Canadian automobile insurance market.

    “Unlike other traditional telematics solutions, the IBRI/Quindell solutions allows broker access to interpret their client’s risk profile and adequately advise them on the most appropriate insurance product available that will match their needs,” adds IBAO President, Chris Floyd. “A broker branded solut

  10. Let me ask again KB- why don’t you come clean- are you a Quindell investor, director or subsidiary owner?

  11. Moron of the week

    Quenron – Another Hot Air RNS – this time in Canada – See more at: http://www.shareprophets.advfn.com/views/8495/quenron-another-hot-air-rns-this-time-in-canada#sthash.T0zkStDn.dpuf …

  12. Do you actually do anything apart from sprout your spin regarding QPP? Get real… The shorts have already started closing, The party is almost over – but hey keep writing your tosh in the hope of gaining a few more muppets to subscribe to your drivel. I can’t believe anyone would pay to read what you write.

  13. I suppose Canada’s 3rd largest insurer must have done due diligence as to the company ability to perform the contract. It would also be fair to assume they don’t believe the company like you – and Evil who’s shorting the company – will be bankrupt by December. Which view should I prefer ? Humm its a tough one. But the view of those who short the business and those who contract to trade with it for the next five years is probably to be preferred. I am however a moron shareholder so I better sleep on it.

  14. Davej, I would like to put a question too you. If this company does turn out to be a fraud, would you
    a) rather see 4,000 people keep their jobs as a result of fraud and protect your investment or
    b) see the perpetrators of fraud in our financial markets brought to justice?
    easy question a or b?

  15. bona,think you have worded the question wrong if i choose (a) they get to keep their jobs and me my money! You have to admit that TW is now getting desperate to try to put a negative slant on a fantastic tie up between two huge companies..Well the market has reacted well and thats what really counts isnt it.Who is right TW or the market as a whole..any ideas on a postcard please to moron of the week competition.

  16. I very very rarely in fact thinking on it can’t think of ever hearing a Brit using the term ‘fall’ except those who have spent A LOT of time in the US / Canada. Have you spent a lot of time out there?, if so my suspicion of a little bit of copy and paste on your part may well be ill founded.

  17. SE

    dam I guess my CIA postmasters wont be giving me a bonus this week.

    As it happens I lived in NY for a year and with a canadian business partner ( pizza hardman Darren) and a Canadian guest at the Greek hovel for much of the summer I have regular refresher courses in North American. Hence cents, boonies, folks etc slip into my language

    T

  18. Suggesting submitting most of the above comments to the weekly competition – hard to pick the best one though.

  19. So after weeks of agony for QPP Shareholders, today has been a very good day.

    Huge Canadian contract win! Its with Aviva, they scream! Hedge Funds closing their short positions! Market sentiment changing, more positive stance towards QPP! CIA agent Winnifrith on the back foot and missing out on his bonus! Daniel Stewart’s £10.00+ forecast realistic! The good news keeps on coming!

    The leading light and investing guru, QPP1000, modestly declines to take the adulation and plaudits of relieved Quendron shareholders!

    The fascinating story continues. many thousands holding baited breath as the game continues with more twists than snake and ladders!

    David v’s Goliath?

    Tom Winnifrith v’s Robert Terry!!!

  20. Unbelievable.
    Are we to really believe that a company like Aviva would sign a 5 year contract with QPP without doing due dilligence?
    Sorry, but you’re beginning to look desperate Tom.

  21. Methinks I smell a placing coming. Let’s wait and see…

  22. I stand corrected sir, my suspicions were way off I apologise, When we are found to be wrong about something it is always decent to accept it.

  23. TW, Still at it on QPP, must thank you for your work, allowing me to accumulate shares in this company on the cheap. I find that if I do the opposite to most of your tips I make a reasonable profit on my investments, I hope your right at calling this one as your credibility will forever lie on the outcome of QPP as you ranted on it for quite some time now (if your getting paid then I hope it to is worth it).


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