did shareholders get ponzied?, page-11

Have to agree with Dogby. Got to think that anyone in BNB in the last few months would have known the risks. If you had seen a share price falling from $30 to 30cents, constantly being in the news and the collapse of Allco which has the same business model those still holding aren't going to get a lot of sympathy and the "I cant believe whats happened" incredulous posts seem a little contrived.

The writing was on the wall as soon as Allco went into the death throes. Any basic research would have shown that they have the same business model so the question should be is the business model is a failed one and Allco has just gone under using it what is it about BNB (other than being a bit bigger than Allco) that will allow them to survive. (The business model being borrowing and buying assets to securitise and flog off to investors while managing the trusts and so earning a mgmt fee while simple enough and can generate the huge returns in times when debt is cheap and rising asset prices is not going to work in reverse). Earnings dry up as price of debt increases, writedowns of assets to the P&L instead of revaluation gains to the p&l and the mgmt fees which are based on gross assets decrease as the NTA or Gross Assets decrease so the manager has less income coming in and in any case the fund would struggle to pay the reduced fee.

Anyone holding at the end would be traders and speculators picking over a dead carcass because of huge volatility hoping to make some easy money. Sometimes you lose doing this and sometimes you win.

PS I lost money on ABC and Allco so I can empathise with losing money but the victim status gets a bit nauseating after a while. Suggest you move on.

best of luck in future endeavours.