Quindell and inaccurate statements.

The Quindell share price over the last few days has improved significantly.

Sentiment, in my view plays its part in Quindells share price movement. This week sentiment is high as news is awaited regarding the end of year review, PwC review etc, etc. See here for more details.

Prior to Christmas, sentiment was low as private investors received blog after blog stating Quindell business was in trouble and would cease trading imminently.

The following highlights what has happened with regard to the impending catastrophic events that would result in the demise of Quindell.

1. Quindell employees would not be paid in the first week of January

Employees paid.

2. Quindell’s NOMAD would resign before Christmas

Cenkos have not resigned or given any indication they will. The assertion that QPP would need to find another NOMAD or the trading of their shares would be suspended has not materialised.

3. Quindell will be in administration before Christmas

This hasn’t happened.

4. Quindell share price will be 0p before Christmas.

This hasn’t happened.

5. Quindell will run out of cash before Christmas

This hasn’t happened.

The above highlights all the different ways the blogger has been able to create a tsunami effect by blogging in different ways that Quindell isn’t a viable business.

All of the points regarding impending doom have been based on no facts whatsoever.

As the blogger has time based his comments it is only a matter of waiting until the date has passed to be able to prove conclusively that what is being written is utter rubbish.

This needs to be considered when looking at other rants and blogs that are not time based and contain no factual information.

Sometimes however blogs contain facts, but are still a distortion of the true situation. For example.

Group  class action against Quindell

It is a fact the possibility of a group class action has been investigated to establish if a claim for compensation can be made for breaches of duty under the Financial Services and Market Act 2000.

It is also a fact the FSMA Act of 2000 doesn’t apply to AIM.

Conclusion

Ignore bloggers, including me. Do your own research and if what is posted can be substantiated it could be credible, helping with any  investment decisions.

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