RE:Is Roger Dent fraudulent? Iseevalue wrote: Seems to potentially be that he is scamming investors. Would love to hear feedback.
I don't know the answer to your question.
But I do know that an opportunistic situation seems to have presented itself:
- a public stock trade at a 50% discount to portfolio value (NAV/sh)
- use profits/cash to buy back (redeem shares) at a discount, thereby decreasing the float (which, in theory, is good for all shareholders)
- As Mgt., pay yourself in options, thereby increasing the float (dilutive to all shareholders, concentrates the ownership in fewer hands)
- buy shares on the open market at a discount (has the effect of further concentrating the ownership in fewer hands)
- all while seemingly unconcerned about the sp and requisit promotion that is ordinarily necessary to attract new investors and support the sp
Unless exit strategies are aligned (insiders and retail shareholders), it would appear that the LT game favours insiders over retail shareholders (that is not unusual, but appears to be more tilted in this circumstance)
It would appear, that there are a few LT, patient retail shareholders willing to wait it out, rather than succumb to the pressure to sell (at a loss for some, or at the very least leaving upside profits on the table) in the hopes of eventually selling their shares at a "fair" price. The nagging questions for them are:
- What about the opportunity cost of tying up my capital with QCA?
- Will I have to wait years to get FMV or better for my shares?
- Why are comparable investment banking and merchant banking holding co's trading at NAV/sh or higher, instead of at a 50% discount?
Is what has happened legal? Maybe. Probably.
In some countires, Mgt would appear to have a duty to "promote" and otherwise increase value for all shreholders. Otherwise it is the obligation of shareholders to hold Mgt. accountable. Mgt as always should listen to the shareholders. Pointed questions via emails, phone calls, AGM attendance, etc. are a start.
Here's an idea...how about tying compensation, including future option grants, to SHARE price appreciation !? Would that stimulate Mgt's interesting in promotiing their Company and thus supporting the SP?
Without action, this is pointless grumbling on a Social Media forum of sorts.
MM