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200p

Globo Scandal Hits The Pros. Big Losses

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http://m.citywire.co.uk/money/legal-and-general-writes-off-stake-in-scandal-hit-globo/a854109

He said that 'with hindsight' it was the wrong investment to make, but that it was difficult to account for the potential for fraud in investment decisions.

It looks like some pension funds, and other funds are nursing losses this week. The shares of Globo have been suspended, and the CE and the CFO have resigned. I am reading on the Bulletin boards, that a few private investors might be forming an action group, one investor has over 500k shares.

Edited by 200p

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Last night Simon Cawkwell, the short seller nicknamed Evil Kneivel, said: ‘There are many breaches of law alleged here that have arisen in and around Globo. There’s the fraudulent raising of money; the deliberate misleading of markets; and the accounts, which appear to have been signed off even though they are a hunk of junk.’

Read more: http://www.thisismoney.co.uk/money/markets/article-3276214/Crisis-Globo-deepens-Financial-Conduct-Authority-launches-investigation-mobile-software-firm-claims-falsified-sales.html#ixzz3pxUCA2pE

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Late announcement from Globo

Nomad gone and another Director and Company Secretary.

Largest Creditor - Barclays called a default on its loans

Looks like game over.

Latest http://www.reuters.com/article/2015/10/30/globo-financing-idUSL3N12U63U20151030

Never invest in companies where the CEO has a name like Costus Apacket

All needless to say oiled through the ever vigilant London Financial markets

Edited by stormymonday_2011

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The CEO cashed out £12m of shares, and has since disappeared before the collapse. The Police and the Serious Fraud Office, would probably like to talk to him.

Edited by 200p

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This is from an ADVFN thread. Something to learn from this:

I no longer have a holding in GBO. I have moved the historical header information to post 3.

======================================================

Having finally been proven right on GBO, I have been giving the BB a bit of space before posting on here again.

Although I ultimately called this correctly, I need to reflect on how bad it might have been for me; before the auditor debacle, I had 1.3m shares - by far my largest holding. So a salutary lesson not to over-concentrate in any one share, no matter how much you believe in it.

The discussion here since the fraud was admitted has covered the accounting issues in detail, as well as the virtual invisibility of the products on the web. There were a few other indications of what was happening that I highlighted previously:
- Costis (CEO) always talked right to the end of investor presentations, leaving no time for questions. Although he would make himself available after, he would speak so softly that he was very hard to hear. He was clearly avoiding questions in open forum. I have never seen anyone else do this once at these presentations, but Costis did it every time.
- The remuneration report showed the directors to be relatively poorly paid with low bonuses. Given the apparent success of the company, why weren't they demanding better rewards? This particularly applied to the Finance Director who, unlike Costis, did not have a significant shareholding. Such a lack of greed was, to me, very odd. Further, Costis never sold any shares and regularly added more with no obvious source of funding.
- GBO was small and made loads of profit. Good and Mobileiron are large and made massive losses. Simple common sense suggests that such a dichotomy in what is essentially the same business is highly improbable.
None of these constitute proof of anything on their own but, in combination and alongside the peculiar accounts, they told a clear story.

Another warning I would add when following a share through a bulletin board, is to look at the company you keep. If you find yourself on the same side as morons like J777J, jamesjoel or Bagpuss62, who respond to opposite views with aggressive abuse, or prize chumps like jazza, who post nothing but patronising hot air, then you are almost certainly on the wrong side of the argument. This was actually the clincher for me with GBO.

Congratulations to 7Kiwi, the original and most persistent GBO sceptic, Paul Scott, who called this unequivocably from the accounting information, and firede for some detailed and devastating investigatory work.

Commiserations to the losers, excepting those mentioned above and others of their ilk. Lick your wounds, learn your lessons, and come back a better investor.

Some people, however, will not be able to do that - this fraud will have ruined their lives. I have noticed that some previously prolific posters such as Jdb2005, arthurly and aimingupward2 have not posted at all since the news broke. I genuinely hope they are okay.

Finally, eric76, having banned me from the other thread for having bearish thoughts, perhaps you would be good enough to reinstate me now?

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Likewise, there have been folks on the Motley Fool warning about globo since at least 2013.

There are good companies on AIM, but it's a jungle. Safer to invest through a fund that'll spread your risk.

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Yes indeed. I rather foolishly got burned badly on angel mining.

Hard lesson to learn.

Easy to draw what in the future may turn out to be the wrong conclusions.

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Likewise, there have been folks on the Motley Fool warning about globo since at least 2013.

There are good companies on AIM, but it's a jungle. Safer to invest through a fund that'll spread your risk.

I'd never heard of this company before reading this thread, but why would any professional fund manager have even considered investing in this (from the sound of it, quite a few did)? Shady Greek CEO, selling invisible product, without an auditor, trying to raise money through junk bonds, and yet people are surprised that it's a scam, and not just any people but supposedly "professional" fund managers who expect an enormous salary for their "expertise". I'd say Globo were not alone in running a scam.

(Having said that, a low-fee index fund, might make sense.)

Edited by richc

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CEO has appeared.


So today he is congratulating a pal who had just won medals at the Greek windsurfing championships. Earlier chatter on facebook suggested he was planning to go along as a spectator.

http://www.shareprophets.com/views/23525/photo-story-crime-does-pay-if-you-are-an-aim-ceo-check-out-where-costis-papadimitrakopoulos-from-globo-is-hanging-out

Edited by 200p

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3 hours ago, 200p said:

CEO has appeared.


So today he is congratulating a pal who had just won medals at the Greek windsurfing championships. Earlier chatter on facebook suggested he was planning to go along as a spectator.

http://www.shareprophets.com/views/23525/photo-story-crime-does-pay-if-you-are-an-aim-ceo-check-out-where-costis-papadimitrakopoulos-from-globo-is-hanging-out

AIM shouldbe shutdown. And the supporting comanies sued.

Apart from Asos, Istruggle to see who the winners have won over the losers/scams.

 

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