Ok, of course the stock market isn't about morals. It's a place to reward (or penalize) short term greed, or to share wealth in a prosperous company. But for a director of a company to make statements like "I'm sure you'll agree when it was worth the wait" - when blind freddy could see what would happen when trading resumed, is either laughing in the faces of share-holders, or displaying a naiveté that is perhaps not the most desirable of attributes of someone in such a position. These are directors who are also a part of Volcan - a private company which lends its shares to Gleneagles.How is it in the long term interest of Queensland Bauxite, for Volcan, controlled by its directors, to be lending shares to Gleneagles. Why isn't there a rule with the ASX for me to be told that they are doing this? I would think it is material to me making a judgement on whether or not to invest in the company.
How can the ASX allow the release to the market of statements which in a very basic way, don't comply with their own rules? (i.e. Jorc, future profit/sales predictions). Who gets hurt? Not Gleneagles, not the directors of the company, and no-one at the ASX. In a couple of weeks, most people in the market will have forgotten this latest episode and moved on.
But not me. I got hurt, because in a moment of weakness I believed these statements without looking deeply enough - trusting that that they would have had to go through some sort of basic filter at the ASX to make it to market.
No doubt people with surnames like Feldman, and Rosenberg (a director of Gleneagles), are enjoying prosperity from the past few weeks' activity. Good luck to them. But I think what galls me the most, is the patronizing announcements on the website about worth the wait, and see if you can read all the pages. Some people are laughing - the joke is definitely on me, and I have learnt another hard lesson about the morality of this business.
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