A couple of questions relating to the petition to 'stip dishonest practices':
In the case of Bellamy, the SP was puffed beyond extraordinary levels on the premise that China would provide a virtually limitless market. In reality, supply, regulatory and other constraints ultimately proved that the SP was unjustified
-in the case of Aveo, the opaque company structure with unverifiable and questionable transactions emanating from China caused concern. Then the company was questioned in the media about its questionable business practices including high and unjustified exit fees, pressure sales tactics and poor standards of care. Then the company came under pressure with poor sales, high levels of unsold stock and a cashflow crisis after settling a class action with payment of $11 mil following allegations of misleading elderly customers and unfair fee structures.
In light of the above, given that both companies were subject to retail investor sentiment which pushed the SP way beyond reasonable valuation, is an enquiry justified?
ZIP Price at posting:
$2.19 Sentiment: None Disclosure: Not Held
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