Ann: Corrective disclosure and update, page-43

[After edit: Ended up typing more than I thought I would, probably rambling but it is what it is]

There are a lot of valid points in here. I am surprised they haven't been given a censure. Perhaps a new Co Sec and 2 more directors was the agreement. If the valuations are affirmed then there is no issue. It appears ASIC haven't stopped them and they will come out once they have the experts reports. For all ASIC have done, and it looks like they went in very deep and read everything, I am at least comforted that this appears to be the worst or only issues ASIC have.

I'll have a go at the rest

>>What part of the new disclosures gave you comfort and confidence to continue to hold or buy more shares? Seriously, what part?
That this is the worst they found. I am extremely glad ASIC have gone in deep. I can only assume the 10 foot warrior was feeding them all he had and fair enough they took action and had a look. What I and possibly others are comfort/ confidence about is that we think this is sufficient to say that it has been verified that it isn't a chop shop or a ponzi scheme, and they are running investment fund, and its not all a scam operating out of a hamburger shop. That's my #1 takeout from this.


>>Was it the bit where ASIC found that numerous statements they have provided to the market have been misleading. Those guys at ASIC are just bullies right. They don't understand or appreciate the financial wizardry involved.

The word misleading, or, Might have mislead" is serious stuff no doubt. I went white when I read that but as I went on I wasn't too perturbed as to the context. And then after all that no censure of fine. This was the worst? I'll take that any day of the week



>>What about the bit where ASIC said they were provided no evidence that the board had even considered let alone approved 42 store rollout of their FX shops but the company made an announcement to the ASX saying this was the case. How could this even happen?

Aren't they one and the same basically? Isn't this just saying there wasn't a meeting minute or note supporting that proper protocols were followed? As I said it sounds like some directors are passive. I don't like that, I am glad they are either gone or more independent ones added. I hope their corporate governance is improved and they don't release amateur statements in their releases


>>What about the bit where ASIC say the JB Financial revenue forecasts were clearly not in a vicinity of what had been published and said they were misleading (which HML now agrees with)... Just another administrative oversight?

I agree. $10m is not $96m nor is $55m. It appears that the end valuation (at least metric) was not questioned by ASIC, just the revenue forecasts. Again, they'll either never make these statements again or ..I don't know. I expect all 4 directors and their additional legal counsel will scrutinze every release they ever make now and good for that. As for the content well we don't invest in JBFG, we never really knew the valuation of the overall business, I don't really know the % HML owns of JBFG (anyone?). They have an offer from JBL to buy it and we are waiting on a report from an expert on that and now another on the valuation. Its going to be another month isn't it.


>>Based on the information released I'd be surprised if ASIC don't censure and fine HML's management.

Yes I did too and yet here we are and they haven't. It would appear that after all they have gone through and all they have done. And my observation is that they would have gone through this swashbuckling pirate meticulously, as in forensically with a torch right into the nether regions of his arsenal, other than the hubris and poor Cor Gov, it appears thats there are no fines, bans, enforcable undertakings or censures. Can I ask what does that tell you?

Takeout
It appears that everything hinges on the valuation to be affirmed by BDO. The KMPG person will do the FY result like they did in Jan, and report it lower as he did in Jan, and do their full audit, and then this BDO one goes and does 2 more reports. I assume Chinese walls or whatever they're called now. One team for the Fair and Resonable takeover offer, and another for the NTA. Maybe that was their ASIC EU requirement or deal? Either way that's a pretty good promise to us. It just means we burn another month waiting and my BHDs get hurt in the meantime. I really doubt they will be able to do the first 20c dividend in a hurry either but we'll see on that.

So lets see. They need to move JBFG out of HML into JBL, at the same time JBL moves over to the ASX. JBL I believe has raised a bit of money already. I don't really care what they themselves come on at as long as we get our payment from them I'd rather be paid out and not scrip in JBL. I'd rather they get money back and then go back to portfolio management-trading which is what I am I expect most of us thought we were buying until we woke up in what March? and discovered we held all this other stuff- although it does look quite reasonable to me and I'm quite keen to read that prospectus when it comes out.

The market will decide the value of the assets in the JBL portfolio at that point, and I think on a roll up basis this might be a well sought after float. I watch the IPO thread here and if there were a thread here for a new IPO for a roll up of a consolidation that has cornered the currency exchange market here in Australia I would be over that like fleas in a mangy dog. And then it has a lot of other financials bolted with it. I'd like to know more about what is in the portfolio- which apparently is still growing- and expect to see this pretty well straight after they drop the 2 IE reports out to the market and resume trading.

They got SIO wrong, they got HHV very right. It looks to me that these are some exceptional and some myeh acquisitions and it is a very viable IPO that will be well sought after...it just depends on the price

Anyway, that's my 2c, that and that for their forward IPOs, they really, really need to get some decent directors on these boards. But at > $100m for JBL I expect it will be able to attract some quality people

And then get me out of restaurants. I invested in a hedge fund, not flipping burgers.