Hi, I was an investor in BLA, What to do right now:
If you are deciding about selling one option would be to just sell half: if it goes bankrupt (or down) your still have half your current value left in cash, if it goes on to double in price you will still have the same market value as you do now in addition to cash.
Look into lawsuits, sign up as early as you can to get the ball rolling, ring Chinese authorities (don't just assume they will do nothing) they may be able to investigate and potentially secure the assets.
Record all announcements and information, only decide based on recorded information. This is all that will count in court. In BLA's case the recordings were removed after the company went into receivership.
Forward looking statements are just that, you can't even sue if they are lying (unless you can prove intent).
Brokers may call you up with a convincing tactic on how to spend your life savings on buying the shares when/if they get to a lower price (this happened to some BLA shareholders). Be prepared to hang up, if it looks to good to be true it probably is.
Gather other shareholder's together especially major shareholders, dissolve the board and appoint independent directors. Request to all directors that all major decisions especially related to debts and cash are put to vote by shareholders.
Do not listen to the fast talk of directors, do not accept "retention" bonuses/ "keeping our people" nonsense, if companies are dependant on specific persons then that is a red flag they are mismanaged, in a the current market gaining an retaining talent should be easy. Be careful about convertible notes and predatory lenders, research the history of people and companies involved. Investigate as to whether their is any incentive for managers to cause the collapse of the company i.e. manager buyout. Do not trust the auditors, history shows that valuations are rarely met when it comes to liquidation.
Be very careful about trusting the short seller also, they are not always right and don't trust their valuation either. I purchased under the short seller's valuations and even that was too high as shareholders have been left with nothing.
Consider the diversity, weightings and risk across the entire portfolio.
SEK Price at posting:
$25.55 Sentiment: None Disclosure: Not Held
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