capital misallocation

1187 days ago

Tom Winnifrith Bearcast: Wellesley investors have only themselves to blame & what now for SYME after today's dynamite expose

I start with ShareSoc backing an investor action group at bust mini bond outfit Wellseley. I warned folks explicity about this almost two years ago HERE and many times thereafter so have scant sympathy. I discuss the role of the floor shitters at the FCA in this debacle. That brings me to Supply@ME Capital (SYME) after today’s dynamite expose HERE. The email is genuine. I ask what next? Finally I discuss comments by populists seeking cheap love, such as shamed Neil Woodford promoter Jeff PressTrip of the Mail on Sunday and Nigel Farage, about GameStop. Do they both really support bubbles and capital misallocation?

3574 days ago

FACT: Bears Do Not Destroy Jobs – capital Misallocation Does

"If a certain high profile company goes bust will you be happy to have destroyed 2,000 jobs?" I am asked by a poster on ShareProphets. Clearly I am not happy if any job is lost (except, perhaps, that of Fat Sam Allardyce) but please understand that if a firm goes tits up it is not the fault of the bears.

Firms go bust all the time, whether they are listed or unlisted. They go bust because they run out of cash and cannot refinance. That one simple metric lies behind every corporate demise.