Good morning! No, it's better than that, it's a fantastic morning!

Globo has finally admitted that its accounts were indeed fraudulently misstated, as I suspected. So after a battle of nearly 3 years, I have been completely vindicated with my numerous warnings to investors that the accounts looked dodgy as hell, and all the specific red flags that I, well, flagged.

Click here to view my entire archive of 21 Stockopedia articles from Jan 2013 to date on Globo, collated into one 30-page Google Doc. It's quite interesting to see how it unfolded. I was bearish from Day 1, and had forgotten just how turbulent things got in Oct 2013, when the original bear raid was made on the company, but it somehow survived and carried on for another two years. Amazing really.

Some people listened, and saved themselves money by steering clear of this fraud. Other people thought they knew best, ignored all the obvious facts pointing to it being at least a semi-fraud, hurled abuse at me, constructed a false narrative in their minds that it was all an evil shorters' conspiracy, reinforced their incorrect views by discussing them with other similarly misguided people on bulletin boards, and have ended up looking complete idiots, on top of losing their money. No sympathy from me there I'm afraid.

I do however have a lot of sympathy for the more decent people who were sucked in unwittingly, through e.g. appalling puff pieces in the press, such as this horrendous Simon Thompson article from the Investors Chronicle on 5 Aug 2015 - "Short sellers in for shock treatment". To allow yourself to be used as a mouthpiece for a fraudster, trying to engineer a short squeeze, in my view shows shockingly poor judgment, and naivete. Not for the first time either, a similar thing happened with the China AIM frauds. Commentators need to be street-wise, and question everything, not just regurgitate stories from the PR people.

More on Globo below. The above is just for starters!


For anyone not aware, you have not one SCVR today, but three! Yes, I caught up on the backlog yesterday, apologies for my outage last week, and wrote belated reports, here are the links;

Thu 22 Oct 2015 - Small Cap Value Report

Fri 23 Oct 2015 - Small Cap Value Report - Globo special (NB. written before today's capitulation)