I don't really feel sorry for Mr. Moneybags but I understand how he must be feeling. The speed with which he threw his money at HIL was staggering. On Friday afternoon of the weekend the announcement was made of his enthusiastic gesture there was no hint of it, Hills family at that stage were going to tip in $2m. By Monday morning it was all over the front pages.
I for one wonder what due diligence was done or whether he purely took HIL word for it when they told him they were good for the money. If that was the case he has learnt a great lesson. Don't listen to HIL a fact we have known for years.
If any due diligence was done it was done quickly, which you cannot do. Due diligence must be a thorough examination of everything which can take days or weeks. If it was done by an employee of Mr. Moneybags he is currently working on updating his CV. with the relevant ommissions. Mr. Moneybags has learnt a good lesson check everything before you toss your money about.
Remember why we invest, not to lose money or go broke, but to be rewarded for the loan, with a chance of capital growth. Well HIL had neither no dividends for years with no chance of ever growing. Don't know why he bothered really. He saw something in his imagination that no one else saw.
Let the games begin. Happy investing and have a nice day.
HIL Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
