Indeed a very interesting thread of TIM here actually talking about the whole MIS industry.
Certainly, as you said, as long as there is new money coming into these MIS the whole show can operate as a ponzi scheme. I reckon this is especially true with those pulpwood projects with so-called “12-month ruling”.
Companies often claim 100% of growers’ 10-year project upfront fees directly as “income”, while what they have actual got is only 10% deposit on the last day of the FY, which is even not enough to cover commissions to “financial planners”. Huge amount of “profits” are claimed from the fairy-airy “income” to pay taxes and dividends and to pump up the share prices… immediately followed by large scale capital raising… CEO’s own shares dumping… huge debt raising…
Well, now the heyday is over… share prices slumped… darkness will descend after the magnificent sunset…
I am not talking about TIM, but I guess many must know what I am talk about…
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
