UK 14:05 Thursday, 15 October 2026
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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.
On 5th November 2014 Quindell (QPP) announced that three directors had purchased £2 million worth of shares in the market. At the same time it was announced that the three directors had entered into a loan facility ‘that may result in the transfer of up to [all their] Quindell Shares’. So far – up to the last two words of the second sentence – we may accept every word of the text of the announcement as based on fact. But from then on, starting from the last two words of the second sentence, ‘as security’, every sentence and almost every word of the announcement (including the table) is a lie.
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Comments
JB
Awesome article.
Glen
Great article. Well argued and completely demolished the QPP RNS. I did notice that IQE RNS was headlined more cautiously as Director Shareholding. Given the distressed nature of QPP and IQE then I bet FE got a bigger than 30% discount. So for QPP stock, a 30% discount to the share price of 125p would mean a profit at anything above 90p. Looks like there’s a new support level.
Given IQE rocketed from 12.75p to 17.5p in the weeks after the director purchase FE must be happy with their 18 million shares.
As you suggest it seems to be an ideal way for directors to cash out whilst fluffing up the share price. It must be time for AIM to clean itself up. Given this nonsense and the crippling spreads it would make sense for private investors to try other better regulated small cap markets abroad. Any suggestions? Russia or Nigeria perhaps.
dasv
An absolutely superb piece of analysis and a superb piece of financial journalism. Brilliant.
Paul Scott
Excellent article.
If you’re right about this (and I think you are), then it’s an absolute scandal.
boggle
Very well explained, what has happened to the directors holdings in igas energy and IQE ?
StephenPeel
Tom,
Does RT avoid CGT tax like this?
winsome147
I’m a bit confused. Have QPP directors received the full market price from FE for their holdings but only spent £2m buying new shares? (in which case their holdings have actually reduced and they walk away with cash)
Or have they only officially received £2m but are getting a backhander too from FE for the remaining value? (in which case they still reduce their holdings and walk with cash)
Otherwise I cant see how they would hand over all those shares but only accept £2m for them.
Scott Sanderson
No he wouldn’t avoid CGT.
So Cenkos lied? Surely if they didn’t see proof of the claims they made, they would just refuse to write the note? Why lie and put themselves at risk?
Anyway can anyone answer these 2 points, Tom is refusing to do so (or his too busy)…. thanks in advance;
1. If EHL are selling the transferred shares they received, in the open market, and if I buy a chuck of them, then I will have voting rights attached to those shares, as will all shareholders buying shares in open market, but RNS says they’re contractually prohibited from voting the transferred shares, so how is it possible for EHL to sell and still adhere to their contractual arrangement?
2. The share register will show RT as owning 46,650,000 shares, even though some have been transferred to EHL, RT still owns them. Worth noting because their transferred and not sold to EHL there is no need for an RNS stating a reduction in change of Director holding.
So if EHL now start selling those shares in the open market and again assume I buy some my name will appear on the share register so in effect the same shares are recorded as being owned by RT and myself. How is that possible?
alcira16247
I sincerely hope copies of this superb work is in the hands of the relevant regulation authorities with a demand that a full investigation be launched into the exact reasons why directors of publicly listed companies are using such mechanisms, as outlined in the article regarding their shareholdings.
Private investors need crystal clear clarification that they are not being duped or mislead by unscrupulous director share dealings.
Scott Sanderson
No if they gave effective rights to sell the shares, it would trigger large tax liabilities.
Cenkos confirmed any loan amount the directors receive will be used to “buy equity”, what would happen to Cenkos if they lied like that? Are Qpp giving them a backhander to issue those lies?
chris
I have shorted this stock via a CFD
Slim Fizzlebeef
Tom,
could you show off your journalistic skills to get hold of their standard T&C’s on these loans?
i guess you’d need to be a company or an individual with a lot of shares before they show anyone the documents so stops us ordinary PI’s having a butchers