Tuesday, 16 July 2013

DJW and the missing quarter billion

DJW had a reported NTA of $3.46 at the end of June 2013, with its share price ramped to $4.50 by the same criminals that manipulate MIR's share price. The criminals have thus ramped the share 30% beyond its asset backing, and at least 60% beyond fair value (with an NTA of $3.46 and costs averaging 20% of operating income, DJW's fair value is at most $2.77). 

To compound matters, DJW's books are cooked even worse than MIR's, with doublecounted dividends receivable, excluded dividends payable, option-burdened assets booked at full value and sundry other deceptive treatments. DJW's reported NTA is inflated by ramped holdings, including MIR shares valued at $11m after its latest ramp. AFI holds both DJW and MIR, and as an ASX100 company has even greater opportunity to issue shares to granny investors using this chain of fraudulent assets.

In FY2013, DJW reported an operating profit of $35m, yet paid dividends of $57m. $5.4m of the dividends were financed by issuing shares at inflated prices under its DRP plan. Most of the remaining cash came from selling off DJW's trading portfolio. For undisclosed reasons, possibly related to ASIC asking the criminals to be more discreet about their fraud, DJW has now suspended its DRP plan. Going forward, barring share issuing or asset sales, DJW's dividends must fall by at least a third to be sustainable. If investors were to attempt to exit their investment in this fraudulent scheme, a quarter of a billion dollars would be missing, according to DJW's own disclosure documents.

No comments:

Post a Comment