Dick Smith is the Greatest Private Equity Heist of All Time

Discussion in 'Stocks & Derivatives' started by SilverDJ, Oct 29, 2015.

  1. SilverDJ

    SilverDJ Well-Known Member

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    SilverDJ, Oct 29, 2015
    #1
  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    sammysilver, Oct 29, 2015
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  3. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    And all perfectly legal!

    Apparently there were lots of shorts on Dick Smith shares recently prior to a profit warning from the CEO which caused a big drop in their price.

    People knew what was up.

    And more. Here's a couple of comments I found on another forum:

    I wonder if Super funds were investors in Dick Smith? You'd want to question the fund manager in that case.
     
    SpacePete, Oct 29, 2015
    #3
  4. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Great find. I like the close comments in "Chickens home to roost" , there were consquences and they're seeing them now.
     
    Clawhammer, Oct 29, 2015
    #4
  5. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Boom! Dropped to 20c at one point this morning:

    [​IMG]
     
    SpacePete, Nov 29, 2015
    #5
  6. Au-mageddon

    Au-mageddon Active Member

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    And this is legal ? :mad::mad:
     
    Au-mageddon, Nov 30, 2015
    #6
  7. systematic

    systematic Well-Known Member

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    Fraud is not legal ...
     
    systematic, Nov 30, 2015
    #7
  8. willrocks

    willrocks Well-Known Member Silver Stacker

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    But what are you going to do about it? Class-action? Legal proceedings would probably take years.
     
    willrocks, Nov 30, 2015
    #8
  9. Agnostic

    Agnostic Active Member Silver Stacker

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    Exactly, there is nothing cost-effective the average investor can do.

    Years ago I held shares in a small-cap unlisted company. They were trading poorly, then ceased issuing any correspondence. I read through the media that they had been taken over. Nothing further ever came my way. I wrote to ASIC several times asking how it was possible for a registered company to simply disappear like that, but ASIC was not interested.

    Unfortunately losses are a cost to the investor and an incentive for due diligence.

    Although what really gets me annoyed is that corporate fraud appears to go largely unpunished, and there are many repeat offenders.
     
    Agnostic, Nov 30, 2015
    #9
  10. SilverDJ

    SilverDJ Well-Known Member

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    But it only matters if you get convicted.
    In the real world these people are practically untouchable.
     
    SilverDJ, Nov 30, 2015
    #10

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