Scandal Ex-Melbourne player Joel MacDonald accused of misleading shareholders

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Handsome.B.Wonderful

Premiership Player
Jan 13, 2006
3,077
3,714
Bigfooty
AFL Club
North Melbourne
Have seen a lot of positive publicity coming out about GetSwift from AFL media sources and the AFLPA channels.

Interesting to read that they may have been misleading shareholders with inflated announcements about deals and not updating the market about losing contracts, a big no-no for a listed company.

Looking at the figures it seems amazing that a company generating only $30k revenue per month (a lot of which is attributed to interest from their capital raising) could have a market cap of half a billion dollars.

http://www.afr.com/business/banking...ift-too-fast-for-its-own-good-20180116-h0ji3t

http://www.afr.com/technology/getswift-shorts-will-keep-at-it-20180122-h0m2ic?btis


Is this a pump & dump / ponzi?

What consequences do blokes like this face if they are caught withholding information as the article suggests?
 
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owen87

Brownlow Medallist
Apr 23, 2016
17,702
22,530
AFL Club
Essendon
As it says in the article; the share price is set by investors, not the company.

I’m intrigued to see where this goes however, as the lack of transparency is certainly not a good sign.
 

perplexed

Club Legend
Nov 25, 2015
2,295
3,133
AFL Club
North Melbourne
Have seen a lot of positive publicity coming out about GetSwift from AFL media sources and the AFLPA channels.

Interesting to read that they may have been misleading shareholders with inflated announcements about deals and not updating the market about losing contracts, a big no-no for a listed company.

Looking at the figures it seems amazing that a company generating only $30k revenue per month (a lot of which is attributed to interest from their capital raising) could have a market cap of half a billion dollars.

http://www.afr.com/business/banking...ift-too-fast-for-its-own-good-20180116-h0ji3t

http://www.afr.com/technology/getswift-shorts-will-keep-at-it-20180122-h0m2ic?btis


Is this a pump & dump / ponzi?

What consequences do blokes like this face if they are caught withholding information as the article suggests?
It's a pump and dump. Though I suspect those clowns are too dumb to remember to do the dump bit.
A Ponzi scheme is too much hard work for blokes of this calibre.
 

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sonnywalters

Cancelled
Oct 29, 2014
5,834
8,869
Newcastle NSW
AFL Club
St Kilda
Funny this has come up.
I did read the articles in the business media and thought it sounded too good to be true.
Usually this is only a slap on the wrist penalty unfortunately.
ASIC and the ASX are as weak as piss.
Lying to shareholders is basically the norm.
 
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sonnywalters

Cancelled
Oct 29, 2014
5,834
8,869
Newcastle NSW
AFL Club
St Kilda
As it says in the article; the share price is set by investors, not the company.

I’m intrigued to see where this goes however, as the lack of transparency is certainly not a good sign.
Companies are supposed to provide continuous disclosure and not to mislead.
Interesting to see where it goes but won't be surprised if he gets away with it.
Shareholders will be screwed.
 

Saint

Premiership Player
Feb 1, 2006
4,654
6,520
Victoria
AFL Club
Essendon
People with a good idea but without a great deal of business experience get rich quick on probably some bad advice (about the float) and then are found not to be the best business men in the world by shareholders who should have known better.

Not the first time, won't be the last.
 

Kabana

Team Captain
Aug 13, 2015
545
1,026
Zamunda!
AFL Club
Collingwood
Other Teams
Toronto Maple Leafs, ASADA, WADA
Have seen a lot of positive publicity coming out about GetSwift from AFL media sources and the AFLPA channels.

Interesting to read that they may have been misleading shareholders with inflated announcements about deals and not updating the market about losing contracts, a big no-no for a listed company.

Looking at the figures it seems amazing that a company generating only $30k revenue per month (a lot of which is attributed to interest from their capital raising) could have a market cap of half a billion dollars.

http://www.afr.com/business/banking...ift-too-fast-for-its-own-good-20180116-h0ji3t

http://www.afr.com/technology/getswift-shorts-will-keep-at-it-20180122-h0m2ic?btis


Is this a pump & dump / ponzi?

What consequences do blokes like this face if they are caught withholding information as the article suggests?

It's not a ponzi - thats where you pay out existing investers with the money deposited by new investors (see Bernie Madoff). Typically they'll mislead the market to keep new investors joining, and as long as the new investments come in so that they can maintain the routine dividends etc no one is the wiser.

This looks like a case of misleading the market - they've been telling investors that they've locked in deals with major corporate clients which were really just trials or pilots that didn't go anywhere.

EDIT: By the way touting those deals inflated the share price by misleading investors around the health/future revenue expected by the company. Would be interesting if those deals made their way into the prospectus, which I can't be bothered researching
 
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Kabana

Team Captain
Aug 13, 2015
545
1,026
Zamunda!
AFL Club
Collingwood
Other Teams
Toronto Maple Leafs, ASADA, WADA
It's not a ponzi - thats where you pay out existing investers with the money deposited by new investors (see Bernie Madoff). Typically they'll mislead the market to keep new investors joining, and as long as the new investments come in so that they can maintain the routine dividends etc no one is the wiser.

This looks like a case of misleading the market - they've been telling investors that they've locked in deals with major corporate clients which were really just trials or pilots that didn't go anywhere.

EDIT: By the way touting those deals inflated the share price by misleading investors around the health/future revenue expected by the company. Woulde interesting if those deals made their way into the prospectus, which I can't be bothered researching

By the way, as someone that works in technology and product management in a Big 4 bank, and is considered 'old school' so to speak - be very wary of investing in start ups run by these 't shirt and suit jacket' types.

Startups are the new fad, run by the hucksters that dress up their 'companies' with flashy websites and all the right buzz words, with photos of them working in pleasingly hipster environments. Investing in them is pure speculation, driven by the hope that some little p1ssant app will become the new facebook.

I'm surprised by how much money gets thrown at these micro companies with products that bring in little to no revenue, no credible plans to monitise their offering, but it's a killer app man!!
 

demondavey

Brownlow Medallist
Apr 18, 2005
25,294
20,892
AFL Club
Melbourne
By the way, as someone that works in technology and product management in a Big 4 bank, and is considered 'old school' so to speak - be very wary of investing in start ups run by these 't shirt and suit jacket' types.

Startups are the new fad, run by the hucksters that dress up their 'companies' with flashy websites and all the right buzz words, with photos of them working in pleasingly hipster environments. Investing in them is pure speculation, driven by the hope that some little p1ssant app will become the new facebook.

I'm surprised by how much money gets thrown at these micro companies with products that bring in little to no revenue, no credible plans to monitise their offering, but it's a killer app man!!
I hate that look. I just generalise. If you wear a t shirt and suit jacket you’re either Mediterranean or a criminal. Wait, aren’t they that same?









Joke if anyone is ‘offended’
 

Altum Volantes

92 - 94 - 06 - 18
Aug 4, 2003
19,941
16,886
WA
AFL Club
West Coast
1710BB81-3B44-40E9-A869-36E00D7CF973.jpeg
 

Marcus DuQuesne

Cancelled
Aug 4, 2017
996
612
AFL Club
Geelong
By the way, as someone that works in technology and product management in a Big 4 bank, and is considered 'old school' so to speak - be very wary of investing in start ups run by these 't shirt and suit jacket' types.

Startups are the new fad, run by the hucksters that dress up their 'companies' with flashy websites and all the right buzz words, with photos of them working in pleasingly hipster environments. Investing in them is pure speculation, driven by the hope that some little p1ssant app will become the new facebook.

I'm surprised by how much money gets thrown at these micro companies with products that bring in little to no revenue, no credible plans to monitise their offering, but it's a killer app man!!
So you work for the Big 4 ...the too big to fail brigade. More scams and rip offs taken place in the big 4 over the last 35 years than anywhere else but they get away with it. I was also a banker( Treasury) in the late 80's early 90's ...not an IT nerd like your goodself. The call cry of my boss was we rip their fcuken lips off today and we will do it again tomorrow...ok boys let's do lunch. IT guys will be the first to go in a crunch for the banks as they were in 1991. So start looking for a new job and enjoy your perks ( do IT guys get them) whilst you can.
 

SwampCreature

Norm Smith Medallist
Mar 8, 2007
7,539
12,211
Sweep shots don't count
AFL Club
Gold Coast
Other Teams
probably
So you work for the Big 4 ...the too big to fail brigade. More scams and rip offs taken place in the big 4 over the last 35 years than anywhere else but they get away with it. I was also a banker( Treasury) in the late 80's early 90's ...not an IT nerd like your goodself. The call cry of my boss was we rip their fcuken lips off today and we will do it again tomorrow...ok boys let's do lunch. IT guys will be the first to go in a crunch for the banks as they were in 1991. So start looking for a new job and enjoy your perks ( do IT guys get them) whilst you can.

Hah hah wtf
 

Marcus DuQuesne

Cancelled
Aug 4, 2017
996
612
AFL Club
Geelong
I think the issue is he has exaggerated or misreprented the good news and buried the bad news.
I think it is a bit early to accuse him of anything just yet...but there is an old saying that goes " it all comes out in the wash" may be appropriate. One thing that will happen is a healthy opening lower when the company comes back online.
 

Marcus DuQuesne

Cancelled
Aug 4, 2017
996
612
AFL Club
Geelong
It's a pump and dump. Though I suspect those clowns are too dumb to remember to do the dump bit.
A Ponzi scheme is too much hard work for blokes of this calibre.
So that means it is not a pump and dump. Sounds like you are talking about things above your pay grade.
 

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