ABS a.b.c. learning centres limited

Suggestions Eddy mislead the market by not declaring margin...

  1. 116 Posts.
    Suggestions Eddy mislead the market by not declaring margin loans don't stack up. Eddy held less then 5% of the company, 12 months ago his LVR was probably below 40%. The day after the profit announcement Eddy sells approx 8M shares, about 5% of total sales for the day. Surely questions need to be asked of the hedge funds which were shortselling and the institutions who were lending stock. Surely when you look at the number of shares traded by Eddie it is not significant compared to the hedge funds and had no real effect to what happened. Who has misled the market. Do the sums. Eddy stated Citibank were his margin lender. It is also known that Citibank suggested to the market concerns about breach of debt covenants. Looking back to ABC's announcement about the debt facility it is noted that Citibank are also a party ot that debt facility. One has to wonder whether Citibanks margin lending area were lending stock, and also whether their hedge fund bas short selling. Where is more disclosure needed I ask you.
 
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