429 days ago
I start with half term trespassers of whom there seem to be many here in Wales. Then it is onto Verditek (VDTK) and why AIM Regulation’s failings matter, Audioboom (BOOM), Versarien (VRS), questions about revenue recognition at Andrew Monk’s VSA Capital (VSA) and finally Moonpig (MOON). The prize Versarien contest mentioned is HERE
466 days ago
On the 29th December when nobody was watching, Bidstack (BIDS) snuck out the news that Francesco Petruzzelli was quitting as Managing Director and was resigning from the Board. So it ended 2022 with bad news and it has started 2023 with even worse news regarding the bust up with its major partner Azerion.
1072 days ago
In an article the other day, I posed a few questions about how the fraud Zoetic International (ZOE) should recognise revenue in respect of its “orders” of $1 million which are almost certainly not repeatable. A kind reader has forwarded me the helpful PWC publication “IFRS 15 solutions for the retail and consumer industry”, its guide to IFRS 15. The new revenue recognition standard published in June 2018. It is most illuminating.
1072 days ago
Shares in the fraud Zoetic International (ZOE) are off again sharply today hitting a new year low of 56p. They are still about 55p overvalued and with 25% of the equity owned via CFDs there are going to be an awful lot of margin calls being issued as each new low is hit. That will create some forced selling so making this a sort of rolling maul which will see anyone dumb enough to keep holding racking up ever greater losses far more quickly than they might think. And thus at this juncture I ponder the issue of revenue recognition, now that Zoetic appears to have a bit of revenue. I say “appears” quite deliberately.
1692 days ago
In this eighth edition of the ShareProphets Radio podcast, sponsored by Yorkville Advisors, in order I discuss my guest next week (the biggest name yet on the show) and Burford (BUR) and the more genberal issue of revenue recognition. I then chat for about an hour to liberatrian comedian, songwriter and singer, Brexit Party activist, gold & bitcoin guru Dominic Frisby. Prepare for a few laughs. Then it is Cathal Friel of Open Orphan (ORPH), where I am a shareholder, and finally David Bramhill of Union Jack Oil (UJO). After that section I discuss nearology with reference to Union Jack, UK Oil & Gas (UKOG) and more generally. If you like this and can’t wait seven days for more of the same you should listen to my Bearcast every day.
1764 days ago
With the added bonus that kiss of death. disgraced fund manager Neil Woodford is a major shareholder, the bears are certainly sniffing around litigation funding giant Burford Capital (BUR). Our own Nigel Somerville expressed his concerns here. One bear (Paddington) has asked if this is the new Quindell (QPP) in terms of revenue recognition. So I asked a former partner of a big 4 accountants to review the 2018 accounts. He notes:
2376 days ago
Yesterday afternoon Dekeloil (DKL) issued a correction to a Q3 trading statement published on 18 October which, for reasons I cannot fathom, was not accompanied by the sacking of the company's FD.
2458 days ago
The big issues for AIM uber dog Servision (SEV) have always been its lack of cash generation which has forced bailout placing after bailout placing and its aggressive revenue recognition policies designed to boost the share price to allow the placings to take place. Lately there has also been an issue with withholding (bad) price sensitive information. On the revenue recognition issue I went into battle 19 months ago, reporting the company to the Financial Reporting Council and now we have another small win for the Sheriff of AIM. A letter from the FRC has just arrived...
2681 days ago
This podcast follows on from A-E HERE, F-J HERE, and K-O HERE. It is perhaps my longest podcast for many moons but are you surprised? Think about what I cover: P is for Potash - as in African (AFPO), Q is for Quindell (QPP), R is for Revenue Recognition as in Redcentric (RCN) and Servision (SEV), S is not for smear (as in Citigate Dewe Rogerson you total and utter bastards) or Strat Aero although both are mentioned but for Sam Antar and T is for Terry as in Rob,
2958 days ago
This is not hard. The RNS from Servision (SEV) today is designed to ramp the shares ahead of a rescue bailout placing. It is bollocks if you add up the numbers. So too was the last RNS by the way. I have reported this POS to the FRC for dodgy revenue recognition policies, it almost certainly now has negative net current assets and is burning cash. There is a bailout placing looming and you should sell now. This company deserves to, and could well, go bust.
2967 days ago
I have to date reported four companies to the Financial Reporting Council asking it to investigate accounts which I believe to be fraudulent and or misleading. So where am I with these four and what is the common thread?
The first to be dobbed in was Quindell. The FRC publicly acknowledged that it widened the scope of its enquiries as a result of my letter and Quindell was found guilty on all sorts of counts. Expect disciplinary action AFTER the Serious Fraud Office has made its arrests.
The next three are Eden Research (EDEN),Servision (SEV) and Avanti Communications (AVN) which all stand accused (by me) of unacceptable revenue recognition policies.
2998 days ago
I am still waiting for Servision (SEV) to man up and send the threatened lawyers letter to me as I am spoiling for a fight with this worthless POS as it rapidly runs out of cash. Just to keep PR Himbo Christian occupied as he briefs his new best friends the Bulletin Board Morons, I have today requested that my VERY GOOD FRIENDS at the Financial Reporting Council (FRC) open a formal investigation into the revenue recognition policy of Servision. The letter follows.
3003 days ago
We have already demonstrated that not only is Servision (SEV) teetering on the brink of insolvency (HERE), has a ludicrously aggressive revenue recognition policy (HERE) but that also it announces deals as pre-placing ramps then patently does not deliver on them HERE & HERE. Now lets look at a pre-placing ramp from Brazil from April 2015. This is a shocker.
3188 days ago
In this part of the bearcast I go through all the frauds admitted to by Quindell today, the bungs, the lies, the non disclosures, the revenue recognition issues, the panama pumps. Most of this has been revealed on this website already but today Quindell fessed up. What we said abut Himex, TMC, Stretton Knowles, the fraudster Rob Terry...it was all true. And that means that Rob Terry WILL go to prison for this. And so will others.
Part two of this podcast - what happens now to shares in Quindell and Slater & Gordon is HERE
3384 days ago
In the regular podcast for today I look at revenue recognition and visibility. This is prompted by the comedy/tragedy of a statement from Gowin New Energy - an AIM casino China joke POS - and the profits warning from Intercede. I also look at Weatherley International, Afren, TXO and San Leon
3561 days ago
How much revenue will Quindell book for Industrial Deafness work this year? And how much cash will it earn. The answer according to its own house broker Canaccord is £228.4 million (well over 25% of group sales) and er….zippo. This begs incredibly serious questions about the revenue recognition policies of Quindell in this new, Quindell untested, area.
The Canaccord note – which you can view here until we give into Canaccord bullying and take it down – covers this issue on page 25. Its historic and forecast numbers are on a quarterly basis summarised below
3577 days ago
An FD of an AIM listed company has passed me the following email entitled “Accounting services all above board” sent by Dorothy from blur Group (BLUR). My mind is boggling does this company do irony. Followers of Blur will remember that within the past three months it has been forced to admit that its revenue recognition policies were all over the shop and to stage a rescue bailout.
On that basis I guess companies will be lining up to pay blur cash to help them improve their accounting standard so, like blur one is “ensuring you’re above board at every point.”
As I explained in my piece at the time of the rescue bailout I continue to regard this company as a slam dunk sell – see HERE
Oddly that piece did not feature in the “Media Coverage” section of blur’s website which is universally glowing. The Financial Times might well have once said
3604 days ago
Do Quindell (QPP) shareholders really understand the company? Well perhaps they want to discuss with me revenue recognition?
In a supermarket revenue recognition is simple. I buy some milk for £1.50. I pay and at that point it goes into the P&L as a sale. The cash might arrive that second or three days later as my credit card company coughs up. But there is little debate about revenue recognition.
In a media business based on advertising I sell an advert and book that as revenue on the day as I issue an invoice. There should be little doubt although if an invoice has not been paid after three months I would make a provision against it so that while it appears as revenue there is an equal entry in my bad debt provision line on a P&L so there is no impact on profits. If I subsequently get payment I release the provision in the next accounting period so get a profit then albeit with no corresponding revenue. There can be some debates here but it is simple enough.
Now we come to Quindell. I refer you to the statement on page 47 of its 2013 annual report:
3649 days ago
No not the pop group, but the AIM listed tech stock whose shares have already collapsed by 50% after certain issues with revenue recognition came to light.
But bear raider Evil Knievil reckons that there is more bad news to come for Blur (BLUR) and
