Short sellers borrowed shares in Quindell and sold them in the market, hoping they would fall, so they could buy back cheaply to return to the original owner.
All legal and above-board providing NO manipulation or collusion to influence the share price.
This blog questions if the volatility in the Quindell share price has been due to a series of coincidences or collusion.
Has the ‘old boy network’ or to put it another way, has the ‘city colluded’ to manipulate legislative authorities and share prices?
1. The Gotham Report
On the 22nd April 2014, at 13:02, Gotham City Research issued its controversial report titled “A Country Club Built On Quick Sand”.
Is it a coincidence that 45 minutes before the report issued two trades executed selling shares valued at £6.772m.
A few hours later the value of these shares plummeted to £3.22m.
Who sold these shares?
Had the information in the Gotham report been factual this would not be an issue. However the report was quickly discredited and therefore a clear case of share price manipulation.
2. High Frequency Trading
The share price has been suppressed at critical times using HFT to manipulate the market.
Is it a coincidence several organisations / individuals carried out HFT at the same time? It is probably market abuse at best and possibly collusion.
3. Tiger Global
The FT article last Thursday exposed Tiger Global as being behind Roble SL. Have they colluded with Coatue and Tiger Management who have also shorted Quindell or is it a coincidence?
Coatue was founded by an ex employee of Tiger Management, as was Tiger Global. Is this a coincidence or collusion?
4. Tiger Global link with Gotham City Research Link
Have Tiger Global worked with Gotham City Research who issued the discredited Gotham report?
Gotham claimed in their report they walked to Quindell’s New York office to establish office empty.
Is it a coincidence that Tiger Global’s office is within 3 minutes walk of Quindell’s office?
5. Timing of FT article exposing Tiger Global
FT article about Tiger Global published when QPP share price reached Gotham’s predicted share price of 3p (pre consolidated price). Is this a coincidence?
Was the FT leaked information by interested parties timed to support their strategy to maximise profits?
Those short could have closed their position and are now long knowing the FT article was imminent.
Only the FT reporter would know.
6. Cayman Islands
Tiger Global are probably based in the Cayman Islands to avoid making disclosures to regulator authorities.
This is a legal “loophole” that allows hedge funds to make anonymous bets against Quindell.
Is it possible this legal loophole was left open by the ‘old boy network’?
The city having been part of the consultation process before the legislation implemented.
7. FCA inaction
The FCA have been provided with a wealth of information regarding short selling and manipulation of the Quindell share price. The Quindell Share Action Group have also lobbied MP’s and Ministers to put pressure on the FCA to take action.
Is the lack of action due the ‘old boy network’ based in the city having a vested interest in short selling and share manipulation continuing?
Is what’s happening with regard to the manipulation of the share price ever going to be investigated by the FCA?
I’ve come to the conclusion that until respected journalists investigate and publish articles about the manipulation and collusion nothing will happen. The press need to create a ground swell of opinion that can not be ignored.
This blog provides a wealth of sign posts that could be investigated further by journalists to produce exclusive articles for their publications.
A wealth of supporting documentation is available should any financial investigative journalist be interested via the Quindell Share Action Group.
Supporting documents for this blog:
Financial Times – http://www.ft.com/cms/s/0/a841ea38-ca4d-11e3-8a31-00144feabdc0.html?siteedition=uk#axzz30XeMc6nc
Gotham City Research – http://gothamcityresearch.com/
Interactive Investor – http://www.iii.co.uk/articles/92434/should-i-buy-shares-quindell-portfolio
Value Walk – http://www.valuewalk.com/2014/04/europe-braces-for-activist-fund-invasion-quindell-plc-qpp-scares/
The Telegraph – http://www.telegraph.co.uk/finance/businesslatestnews/10780492/Quindell-shares-crash-50pc-on-damning-Gotham-note.html