The NZX will have to go to the back room and find the wet bus tickets left over from the Watson days
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The NZX will have to go to the back room and find the wet bus tickets left over from the Watson days
The directors will have some kind of responsibility if it involves wilful blindness. Re: Mainzeal case.
$0.0015 x 100,000. shares = $150 as compare with
$0.15 x 100,000 shares = $ 15,000.
The mistake is obvious to the question of whether there are elements of wilful blindness and disregard. All these involve quality of forensic investigation and preparation.
In the end the directors sign off the accounts...
Reminds me of a company not too long ago ( within the last year or so ) that I had shares in of a similar ilk as BGI that had a similar ( mistake !) in their published accounts that were ( released ) to the S Hers and public, when I noticed that ( mistake ) I notified the fish head on the board and reported to him my discovery , how can this be correct as to my mind the amount was two decimal points out, he said straight away , of course you are correct and withdrew the accounts for correction and rerelease .
So why did not this happen this time, do people not thoroughly read accounts that they have shares in when released, and if found to be incorrect notify the fish heads in the company?
What a great well planned heist!
but does NZX have appropriately equipped bods onboard to start tracing the share trades to see if anything inappropriate has gone on or there is a visible target to nail a naughty boy ticket on ? ;)
At what point does questionable conduct turn to fraudulent behaviour, if there is evidence of SP jacking up, or is that the point where FMA (bless their sweet little over-rewarded hearts for the onerous task of squatting at a desk trying to look busy, courtesy of the recent heavily hiked fees imposed on all companies etc) or SFO get a call to look in ? ;)
The FY19 accounts (and preliminary accounts FY20 page 7) are correct. But one part of the announcement on 25th of June stated the 15c NTA. NZX website must have taken it from there.
Company responsible, NZX perpetuated it.
NZX corrected it very quickly when it was politely pointed out to them that their website info was erroneous.......:blush::lol:
It's a wonder the auditors did not pick this up?
Ah, I see later that the accounts were correct, somewhere human error transposed a decimal point a few spaces along. Can happen, not the worst thing. But if in the interim some insiders sold their shares that is a bit naughty.
This share really did take me back to 1987 when everyone including your taxi driver had an awesome stock tip.... usually a company like Blackwell... but adding Corp onto the end... all of them took off like rockets then ended up in the rubbish heap
I actually write to the NZX for the price changing and their wilful change on NTA by 100times. NZX reply is they make enquiries to the company. HOW LAME!! No punishment for wilful behavior in this country. That is what i feel most of the time here.
They should be taken to court. If such wilful behavior isnt published. Then who will trust share market any more. Too easy to manipulate isnt it. Non tangiable assest is basically goodwill. But by 100 times. it Appears Very intentional to me. Since the total asset number changes. Equity would be changed too therefore leads to the reported liable taxable income change. So I reported them again to FMA and to IRD as well. Whoever holds this share should do the same. No tolerance to manipulation!!
Currently down to 2.4 c (- 44%) today .. last one out turn off the lights..
Absolute disgrace.
Interesting to see if there is any further disclosure notices on directors trading......
Agree - if it was a genuine mistake they must have wondered what the hell is going on and maybe there is a god after all :).
Actually if you are a Director of a shell company with no prospects, income or future and the SP spikes you must have known something is not quite right. After disclosing to the market that there was no reason for this to happen surely you would have to think twice about why your worthless company is now worth $50M!
Not hard to find. I see Sean Joyce is chairman.
http://www.bgholdings.co.nz/board-of-directors/
Untrustworthy
Two glove pm me he has been holding this share for ten years and sold shares days ago. Obviously, u r waiting for price to drop and buy some. NTA is non tangible asset basically goodwill, how to estimate? no clear rule on that.
How dogy to change that. But who will do business with guys listed on the company website. So untrustworthy. Someday they going to play on other people's interests too. Btw, who suffered loss? I am quite interested to get in touch and put BGI to court together.
I can tell u pretty sure in developed countries like UK and USA wilfully change number on financial report is crime. Prison waiting because of the bad intention is breaking the law. Leave such behaviour means tolerance again. U may also work or a relative of the company director. I insist upon my opinion.
And their financial statements were audited and correct. The problem was with a return to NZX which had a decimal point wrong and this figure was entered onto the NZX site wrong. People relying on software to find bargains started buying and lifting the price. Then sharesies investors bought on mass. These people did not do any due diligence. People refuse to protect themselves and then want someone else to take responsibility. Sure, a mistake was not picked up. What do you think should happen here?
I have more of a problem with the directors who sold out when the share price was inexplicably high. Heck, even the directors selling up was a big warning sign.
Directors know and didnt reveal but reap benefit. This is fail in due diligence
Again, who want to put this to court. Can pm me
I definitely won't be buying back in, these guys have no business and really are just a shell company so would not be worth more than $1M. With the shares on issue the SP should be no more than .002 cents to get to a market cap of $1M. I'm glad i'm out and won't be buying back in regardless of price. I tend to agree to with others comments that this will be a hiding to nothing and anyone that actually looked at their accounts would see only $11M of loans, $40K of income and a $700K loss for the year and if some were happy to buy at $0.09 cents valuing the company at $50M - well I won't comment on that as it would breach Share Traders T&C's :). It was obvious that the Net Tangible Assets figure was incorrect just that no one picked it up, actually on Direct Broking is still showing at 0.15.......
Yvonne did you hold BGI shares?
When i order to sell the market halted. And next day price dropped dramatically. Since non tangible asset has no confirmed written out regulation to value it. It is quite subjective thing. So can be changed at any time? And fair for public? I dont think so. Welcome people pm me for this and put them to court.
I believe it is ultimately the trader's responsibility to do their own research before buying into a stock and not rely on a third party website to report a false "NTA" value, keeping in mind most of the people that bought into BGI probably have never heard of that term in their life.
Doing their own research includes looking at past reports, conducting their own DCF on the company, looking at the company's previous share price trading ranges etc etc.
I don't believe it is the insider's fault for selling shares when they've gone ~1000% for no apparent reason, others would probably do that as well in that situation.
Take it as a lesson learnt and move on
Such a coincidence. Director firstly sell at peak and then find out the real subjective value on goodwill should be 100 time less. what a smart show!! Very Untrustworthy people in this company.
Losing thousands of dollars for this?? Can anyone give some respect to rules to NZX
This is why you must do your own research and always invest what your willing to lose, There is a Sharsies Fb page that i browse and there was a popular post over this the day it crashed and a lot of people were angry yet none of them could give a good answer as to why they had invested in the first place apart from following the trend blindly. Some even felt they did a great job because they had come out with 100s% in return which yes they did but this could have just as easily been them if they had held any longer as they had no reason either.
NTA is Net Tangible Assets not "Non Tangible Assets". It is not "goodwill". I don't believe you bought because of a high NTA figure but because it spend a few days in the top growth bracket for the day. FOMO and dare I say greed caused many people to buy without doing any real analysis.
The directors didn't sell at peak. I don't believe there was any intent to deceive on their part. When it is so easy to check, why would they?
Investing directly in companies isn't for everyone and funds can make share investing easier if the investor lacks time or skills for analysis.
Would you be complaining if it had gone to NZ $0.20 / share ?
Remember, on the stockmarkets - a rapid rise can in absence of pertinent announcements for this - can turn into an equally rapid descent as well .. That is the risk .. That is the nature of the market.
Always do your own research & diligence on a target company of interest, before pressing the Buy / Sell whatever button.
If you are not using a Financial Advisor or Sharebroker who provides specific advice on the share(s) of interest, then ultimately you take that risk on - yourself
That is - risk of Gain or Loss or Status Quo etc, depending on prevailing Market sentiment & movements
To reiterate .. in today's very turbulent & uncertain times in global & domestic markets, it is absolutely essential to research yourself or to seek specific Broker / Financial Adviser advices in Equity Markets or you take all investment risk onboard yourself
There is no automatic guarantee of a share price movement up, down or otherwise, no free lunch, and no guarantee of dividends, a company's performance, performance of any particular sector or the economy etc..
Experienced investors have spent considerable time in watching & analysing Equities that are of interest to them, also the economic conditions and measuring their risk.
And you may well wonder how much of this sorry mess could have been advoided if folks were paying $15 to $30 brokerage on a $500 minimum investment... brave new world these low/no brokerage platforms.
While I agree this was extremely dodgy, I feel like you need to take responsibility for your decision of investing into a company with an extremely bad balance sheet and fundamentals. There was no clear reason why it should have been appreciating in shareprice.
It's not your fault and I'm not trying to blame you as it's human nature to chase $$. But you should use this as a lesson and realise that easy money is lost easy too most of the time. You could have exited before the halt, and made some gains why didn't you do that? Either way if you choose to invest with this style understand the risk of a halt occurring when you don't want it to.
Goodwill is excluded from NTA so no luck there bud.
If a share price goes up ~1000% and you join in based on the hype (or thinking NTA includes Goodwill...) and without proper understanding of the company/due diligence it's no one else fault but your own when it falls back to earth.
The Sharesies crowd really need to put some time into proper analysis and understanding of financials, rather than buying penny stocks cos they are cheap or the latest hype. Expensive lesson.
Looking between penny dreadfuls there appears links to directors of both bgi and ACE with the later being 10% of the value of BGI, anyone understand how the value is seen in these shells, I have a few $ in ace and sold on the rise of bgi as it just didn’t warrant 6.5c as it increased
Indirectly I think I still have a few solitary lamp posts in ACE after all repeated dilutions, consolidations etc etc since in-specie distribution over 10 years ago!
I guess they can't knock 1 or 2 lowly free gift shares into any fewer ;)
SP currently down to 1.7 c (- 15%)
I feel sorry for whoever got left holding them when the game finished
How did you select BGI to 'invest' in? Were you guided solely by the NTA on the NZX website? (sure their website will have a disclaimer) Or did you actually read the financial statements? Or was it just a big case of FOMO??
Just need to look at the volumes being traded compared with normal. There had been 2 x price inquiries.
Need to look at this as a learning experience, albeit a costly one. I agree with the comments from DazRaz, TheHunter, JSwan etc. If you don't know what NTA is, then difficult to blame this!
I personally know the person who contacted NZX about the incorrect figure. He sure ain't no financial wizard ;) and nuts to think a random punter spotted it about 4 weeks after being published, and appeared to cause the trading halt. Only took a couple of minutes of reading the financials.....
If you don't know what you are buying, or why you are buying, then don't.....
Yvonne, take it from me - the UK, US, Australia et al ALL have their share of penny dreadfuls, in fact usually much more so than here in NZ. That doesn't exonerate those who sold into the rising tide, and there may yet be action from the NZX over the incorrect reporting. It isn't that they "changed" the number - the financial statements are correct, NTA is simply a calculation and it was done incorrectly.
Also - NTA is usually Net Tangible Assets; the opposite of what you have described in your post. It is all the stuff that is real (ie, not intangible). So usually relatively easy to value.
I am not associated with BGI in any way shape or form. And hope never to be.
Well said.
If one looks at the colourful story behind NZF (its predecessor) and do some research and will understand where the whole thing comes from.
The board is pretty much the same group of people with insertion of 3 new directors.
The original idea was to restructure the company and have derivatives trading. My understanding is this fail to take off.
disclosure: do not hold any shares.
Had a quick look on Sharesies "Share Club" (FB site). Unfortunately at least one punter has been left holding the bag - losses of up to $13k. Yes they were very foolish (should have read Sharetrader!), but sad as an early intro to "investing". I made similar mistakes in my youth - hopefully a good lesson out of it at least..
You could try FMA or https://omnibridgeway.com/
Back down to .01 ( imo where it belongs ) is there going to be any enquiry from the NZX as to this recent shameful run up ?
Not sure what you are seeing. On Friday it closed on 0.9c. This morning it started at 1c then showed up as the top gainer for the day at 11%. FOMO is too much and a couple of people are buying at 1.2c. Now shows today's gain at 33%.
No NTA to blame this time. People are just blindly "investing".
Is it happening again? FOMO or something up? Deja vu?
Goodness - Currently 2.2 c high 2.7 c on a bit over 5 mill volume across 203 trades..
What will NZX's questions & likely answers back this time be ?
Maybe someone on sharesies made 80%+ in one day
Jokes on us !! what a great punt for some im sure. Goes extreme the other way too though :lol:
338911.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Woof! Woof!
If you can't afford a CEO and a COO, then you must be pretty much......
Why is this outfit even trading at these rediculous prices , should they be at .001 ?
I see that BGI is rumoured to be reborn as a possible back door listing.
As it is well known a back door listing is "worth" approx $1 million and as such the current M C of BGI is imo 4 X over priced & should be selling for .002 !!
Something going on here with BGI ? -- bit of an upswing from lowly 0.004 in recent days to 0.006 today
Or just another obscure forum whispering fat cat bounce before retracing downwards ? ;)
Let's face it, they dont appear to have any continuing business in the camp now ;)
No compensation for those hoodwinked into paying 9c for BGI and now worth 0.5c = 95.5% loss.
But NZX reaps the benefit with a $40,000 fine. :t_down:
http://nzx-prod-s7fsd7f98s.s3-websit...624/360388.pdf
Honestly I'd be surprised if anyone was buying because of the NTA figure. I followed it closely and it was just a 'Sharesies pump'. Basically a fly wheel with more and more buying only because it's going up, then a big dump. Happened with a few other stocks too (CBD).
Doesn't excuse the negligence of BGI however.
Was a mob on Sharesies FB page all falling over themselves to crow about their returns - anyone who pointed out that it was incorrect information was declared to be a "bad investor" - the same crowing crowd then got all angry when lost out, but I suspect none of them had even thought about the NTA - they just saw "Jane from Dunedin" or "Bill from the North Shore" saying how amazing BGI was...
The very large majority claiming they invested off the NTA figure clearly are trying to find an excuse for their losses. They hadn't even opened the annual report or questioned anything - and probably don't know what NTA stands for and what the company even did. Although at the same time the NZX couldn't even work out the NTA either.....
It was clearly, to use MarineSalvage's words, the Sharsies mob falling over themselves. I was on the FB page and can recall a wannabe analyst saying price was going to 30-40c. Dangerous stuff, and just FOMO. Unfortunately some of those got burnt badly.
Just had a look back to july 2020 and there was a post asking what was going on with BGI. 205 replies....
"To the moon!!"
"Everyone back in, 10 cents here we come"
"I'm new to this but what exactly is Net Tangible Asset"
"This has been the most insane ride ever!"
"Are people going to sell at this point? I'm so confused on what to do."
"I'm at 310% return and its still going up!"
What I had a good laugh in the announcement was this:
I actually emailed the NZX on the 22nd of July 2020 to raise the issue that the stated NTA was incorrect, and received a response from the NZX the morning of the 23rd and went into a trading halt 1hr 49 minutes later. So it appears that I triggered the trading halt and subsequent drop in price to a usual level. :ohmy:Quote:
NZ RegCo subsequently assessed that the NTA was potentially incorrect, and sought clarification from BGI. BGI’s shares were placed into a trading halt on 23 July 2020, pending validation by BGI. BGI confirmed that the NTA figure was incorrect, and released a market announcement to this effect at 4.02pm. Trading in BGI’s shares resumed on 24 July 2020, and BGI’s share price fell from $0.091 to $0.043 that day, falling further to $0.015 by 31 July 2020.
I'm actually quite proud that I highlighted this. Shoddy and extremely sloppy of the company, especially when repeatedly putting out incorrect info over time. $40,000 is nothing when there was substantial director sales, selling quite a few million in shares, and sizeable profits. Very shameful. :t_down::mad ;:
I feel very sorry for those who lost their money, but it would have happened at some stage when someone else hightlighted this issue, and more people might have lost by then. Hopefully some look at it as a learning experience. Last time I looked, it was a company that had less than $1m in assets, turned over <$1m, it loss was half its turnover and at its peak was valued over $42m. So no one was really looking.
Whispers out on some Asian forum were rumored to be reason for rapid SP rise, if I remember
correctly ? ;)
Woof Woof!! At least they managed to get the NTA correct by the looks of it......;)
Sept 2021 Interim Report WP.xlsx (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Microsoft Word - DRAFT Interim Sept 2021 accounts (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Its still going.....another great year.....
Microsoft Word - DRAFT Preliminary 2022 annuals (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
For all those Sharesies holders out there......:sleep:
http://nzx-prod-s7fsd7f98s.s3-websit...214/395464.pdf
Are they still trying to find the Reverse knob for an 'RTO' movement ?
Seem to be a few shells listed out there with similar aspirations
Note how the Cap changes increase certain stakeholders lots to capitalise in
loans provided to keep 'advertising' availability for RTO action
Only a quarter of a Million cost for jogging on the spot in the last reported period
but probably includes a fair chunk of accrued Director junkets, incase an opportunity
presents itself as respectable..
$138K in past two periods - most would have to ask - what were Directors doing to warrant
that level of remuneration, based on activity levels and what has resulted ? ;)
Here's the link to the earlier NZ Finance (NZF) thread - same company, now BGI
https://www.sharetrader.co.nz/showth...-Empire/page15
Director incarcerated in Phillipines and nobody at BGI knew
http://nzx-prod-s7fsd7f98s.s3-websit...866/417087.pdf
2023 Annual Report:
http://nzx-prod-s7fsd7f98s.s3-websit...834/397400.pdf
Quote:
Note 24.3
Directors Shareholdings
Director Holder(s) 2023 2022
Kaw Sing Chai (Michael) Kaw Sing Chai (Michael) 55,871,667 55,871,667
As at 31 March 2023, Kaw Sing Chai also has 100% shareholding in Blackwell Global Group Limited (2022:
100%) which holds 482,929,770 shares in the Group (2022: 382,929,770).
During 2019 and 2018, bonds were issued to Blackwell Global Group Limited based in Singapore in which Kaw
Sing Chai has shareholding interests. Refer to note 17 for further details.
Largest Shareholders
Shareholder data in Additional Information is as at 31 March 2023, unless otherwise stated.
1 Blackwell Global Group Limited 482,929,770 71.68%
That's the major indirect shareholder in a stew - lets see what comes out of this & what eventuates ;)
Will Mr Joyce be able to pull something magical out of the hat ? ;)
Oh, he's resigned!!
And they've changed the name of the company!!
https://www.nzx.com/announcements/429927
At the request of the independent directors, Mr Michael Chai has resigned as a director of the Company with immediate effect. As a consequence, his alternate director Steve Chua has ceased to hold office.
Given Mr Chai’s departure, and the independent directors wish to separate the activities of Mr Chai, who is also a director of the major shareholder of the Company, from the Company, the Board of the Company have resolved to change the name of the Company to “RTO Limited” and the Company’s ticker code from “BGI” to “RTO” with effect from 1 May 2024.
https://www.nzx.com/announcements/430017
The Company’s major shareholder, Blackwell Global Group Limited (“Shareholder”) holds Secured Bonds issued by the Company for the sum of $550,000.
At the request of the independent directors, the Shareholder has agreed to forgive the repayment of $200,000 of those Secured Bonds with immediate effect.
These funds, together with the additional free cash held by the Company, will be deployed by the Board towards:
• the payment of the Company’s ongoing compliance and administrative costs; and
• investigating a reverse takeover transaction. Any reverse takeover transaction will have the effect of diluting down the Shareholder’s shareholding interest, and Mr Chai’s personal shareholding interest in the Company significantly.
The Board proposes to work with the Shareholder to restructure the outstanding balance of Secured Bonds, either through the further forgiveness of all or some of those Secured Bonds, or the capitalisation of those Secured Bonds into ordinary fully paid shares during the course of this financial year.
The focus of the Board now is to actively pursue a reverse listing transaction.
Another Being AI debacle incoming?? :mellow:
It might be off to the races soon :)
4's & 5's now .. must be some renewed interest that Mr Joyce pulls another bundle of joy out of the hat for stakeholders
AIR might make Ellerslie an extra premium air haul in - 3 legs & 5 arms added on top :)
A shame that the indirect BGI majority holder tucked up in an Asian jail with a now tarnished image couldn't have been completely ditched ;)
Thank you very much .. now in the spectator stands watching for further joy :)
Now ticker - RTO - RTO Limited
Just to help those digging in the Lost & Found pile :)
I didn't even know who RTO was......just the same dog by a difference name.
https://www.nzx.com/announcements/433419
Hopefully they can calculate NTA per share correctly this time and don't prompt a feeding frenzy on Sharesies by having the decimal point in the wrong place.....;)