RE:If you are going to hide a fraud jayjay2020 wrote:
you don't make all the pieces and proof of a fraud internet searchable as Grego claims. Let's give Andy and Vic some credit . They are not stupid to leave an easy trail to something as fraud. They could have used a multitude of offshore entities if he wanted to commit fraud . They shell companies would never have been found through a simple internet search
Yes, you would think the above would be the case, but the short guys make a good point that these shell companies are in fact a matter of public record and given the trail of transactions and valuation step-ups (with seemingly no change in fundemental value during each step-up), there appear to be some systematic questionable decisions made here.
Why I think this report hit so hard is because:
1) there was already some question marks along the same vein swirling post-Nuvera
2) The latam shell company activity is a matter of public record, not "opinion"
3) It's not just the Latam puchase "overpayment" and potential write-down, but potential legal liabilities of misleading shareholders, even slightly, that is the bigger issue
4) Given 1, 2 & 3, you're begining to see a bit of a loss of confidnce in management as this is just one too many red flags to be a co-incidence.
Despite the above, I don't think APHA is worth zero. The Canadian assets certainly have value (both grow capacity and supply deals) and so do the Latam ones, it's just that when you've started to doubt if mangemet has always done what's in the best interest of shareholders, it doesnt matter what fundamentla value is, you just dont want to support that management team anymore.