Good afternoon!
Let's start with a really shocking turn of events at Israeli, AIM-listed internet-of-things company, Telit:
Telit Communications (LON:TCM)
Share price: 127p (down 30.3% today)
No. shares: 129.8m
Market cap: £164.8m
Statement regarding Chief Executive Officer - Events have taken a shocking turn at Israeli internet of things group, Telit Communications (LON:TCM) . Hopefully readers listened to my repeated warnings over several years here, about this company's red-flag laden accounts. Also that its profits are essentially fictitious, the way I look at things.
Telit shares are down a further 30% today, to 127p. A bombshell announcement came out today. Here is the full text;
Telit Communications PLC (AIM: TCM, "Telit", the "Group"), a global enabler of the Internet of Things (IoT), notes speculation regarding historical indictments in the United States of America of Telit's Chief Executive Officer, Oozi Cats, in respect of matters which are unrelated to Telit and significantly pre-date its establishment.
The Board of Telit has appointed independent solicitors to conduct a thorough review of this matter. Pending the outcome of this review, the Board have agreed to Mr. Cats' request for a leave of absence from the company. Yosi Fait, Finance Director and President, will serve as interim Chief Executive Officer during this time.
Further updates will be made as soon as possible.
I think this must relate to explosive revelations on ShareProphets, which seemed to clearly link Telit's CEO & his wife to property frauds committed in USA many years ago.
To my mind, if innocent, then the CEO would have stayed on, and fought to clear his name. The fact that he's requested a leave of absence (jumping before he's pushed, perhaps?) makes this look almost certain that he's guilty. Indeed, the evidence presented by ShareProphets made it look like the people who skipped bail in the USA over fraud charges, are almost certainly the same people as the CEO and his wife. A wife who amusingly, seems to be on the payroll at Telit's "Art curator"!
So the big question is, what happens next? I expect the CEO is toast now. With him gone (probably permanently), then who knows what else could come out of the woodwork. Today's announcement makes this stock completely uninvestable now, in my view. So…
