It's appalling Tony.My sincere condolences to your friend - I...

It's appalling Tony.
My sincere condolences to your friend - I hope they are coping with all this. Wouldn't wish it on anyone.

Tony, I've read a couple of posts from people with Opes Prime accounts, who didn't have margin loans, but either their stock was sold OR the cash in their account was withdrawn. I'm stunned that this is happening, & can be allowed to happen.

Additionally, ADY shareholders have been advised by their affected Director (Phil Thomas, who has 47m ADY shares under margin loan with Opes Prime) that he can 'write a cheque' to cover the debt. Firstly, I don't believe this is possible, given that his shares are now owned by the bank.
It will be very interesting to see how Thomas' story unfolds - given the shocking treatment that others have endured, when they didn't even have an open loan with Opes? There must be fairness, but also consistency in dealing with each client?

This is what Thomas posted on Top$tocks forum:

Dear Top stockers

I just want to make sure you all understand the facts.

ADY has no loans, or any other connection with OPES-Prime. Hawkswood a private investment firm loaned us $10m and to show their support bought 80 million shares and continue to provide fantastic support. Their funding is NOT Australian based.

Regarding my loan if and when I get contacted by Deloitte to repay the facility I will write a cheque. As I have declared on the ASX I hold 47 million ADY shares which makes this portfolio worth $9.4m alone. As declared I have no other debt.

Most other people with loans will go to ANZ margin lending who are offering a 40% gearing ratio in a diversified stock portfolio of at least 4 shares. Then there is the strategy of equity swaps etc etc so it is possible to finance as much as you need with more than one firm.

Opes Prime and Leveraged equity going into Administration is the best thing since sliced bread for us - a regrettable circumstance for them. It gets rid of - in one pass - all the margined daytraders who are selling into good annoucements, so in my experience (I went through this in 1987 as director of broking firm with a large margin lending business that survived and worked with other administrators on the disposal side of shares) my view is it will take Deloitte probably the best part of six months to work out who owes what and how to recover it and three years to complete the job. Its the basket cases they will address first like MFS, Aristocrat etc etc.

The best part is the Deloitte guys are experts at selling stock not like the amateur day traders and its in their best interests to maintain the price (to keep margin ratios in tact) so don't expect to see big dump lines as its not going to happen. Pls note TS's that posted this!!

ADY is going from strength to strength as reported in the announcements and while like all companies we have had our setbacks we have a great management team in place, good strong clients, operations improving all the time and a clear well defined action plan to achieve our goals which we continually reassess. Notwithstanding the free lunch you will get when the demerger goes through from the upward P/E adjustment!

regards

Phil Thomas
PS The ASX announcement has been incorrectly interpretted by a few who think ADY has a loan from Opes against my stock - its not it me.



cheers
Marny