It’s a Greek Parmalat
By Quintessential Capital Management – Investigative Research Team
Mechanics of the Scheme
Based on the evidence obtained through our extensive research, we believe strongly that most or all of the allegations concerning Globo Plc are well founded and, if anything, they tend to underestimate the gravity and scale of the irregularities being committed.
The most important part of the scheme involves so-called “satellite companies”. These are
essentially empty shell companies, located in various countries (especially Cyprus, Panama and Greece), which Globo uses to generate fictitious sales and costs in order to inflate revenue and profitability. The resulting fictitious financials are then mixed up with legitimate ones to give the impression of a larger and rapidly growing company. We suspect that, fabricated financials make it possible to raise additional funds from creditors and shareholders with the objective of acquiring legitimate companies and, presumably, to dilute the "fraudulent" part of the business over time.
See the report here at SHAREPROPHETS:http://www.shareprophets.com/partners/GBOBR.pdf
No surprise to readers here. I've been flagging up Globo as a likely fraud for about the last three years - it was blindingly obvious from the accounts, if you know what you're looking for.
PP.
