The thing about this talk of a fraud is it does not add up on the pure sense that they visibly have a product, visibly built an office and visibly paid a dividend.
If you were to say the company was set up so the escrow shares were sold by the actual CEO to get cash into Australia why would he do this? Plus how easily would it be to track the money and him? quite!
The CEO would lose much more on the existing holdings he has, the only way would be if the books are entirely cooked and auditors did not pick it up and he is funneling money out.
If this was the case I would be shocked as surely at a minimum auditors would be getting bank audit confirmations of balances.
Seems a real moot point to me, for MF to question it shows a lack of research and regard for facts.
I agree with the DNA call, not to mention it is on a heady PER. Most likely Mike King mentioned DNA in his report but as a writer for MF they would have said sorry but we actually cover this stock so don't mention that one...
SBB Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
