Good evening (being written on Sunday evening).

Apologies for this report being 2 days late. I want to get it done before the new week starts, so that I can start the week up-to-date, and with a clear conscience. Plus, how could I not comment on £GBO shares being suspended, after publication of a dossier alleging that 60% of its sales may be fictitious?!


Globo (LON:GBO)

Share price: Shares suspended
No. shares: 373.7m
Market cap: £105.6m (based on c.28.25p price at time of suspension)

(at the time of writing I have a short position in this share)

Shares suspended - under Stockopedia's editorial policy, I'm not supposed to comment on shares where I hold a personal short position. However, since the shares are currently suspended, and we don't know when they are coming back from suspension (if at all), then it's not a stock which can currently be traded. Therefore I think it's perfectly reasonable for me to comment on this.

In any case, technically I don't personally hold the short position - it's in a family member's spread betting account, but I always over-disclose, because I think it's best to be completely open, and tell people all mine & my family's positions as if they were mine.

As regulars here will know, Globo has been a bargepole stock for me, for nearly 3 years now, I've been warning readers here in numerous reports that there are many red flags with the company's accounts, and its behaviour. Put those things together, and I've been virtually certain that this thing was very badly wrong, and would probably end in disaster.

We don't know for certain yet, but it's looking increasingly likely that my suspicions were correct.

A small New York based Hedge Fund, called Quintessential Capital Management ("QCM") seems to have issued its highly critical report on Globo via ShareProphets. I've googled it, and can't find the report anywhere else, not even on QCM's own website, which is visually pleasing, but almost entirely devoid of content. I saved a copy of the report onto my hard drive, just in case the report is pulled from the web.

I've read the full report twice now. My reaction is similar to others, in that it appears a little amateurish in parts, seems to make some factual errors - not good when you're trying to establish credibility. The little details…

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