Here you go. My quick Interpretation/translation of today's article…I don’t have the time for a proper one:
Fredly increases the pressure to get an investigation of the stock-exchange catastrophe (performance wise) SIAF, and rages after the company did a massive write-off of a credit loss.
Siaf was listed at 80 NOK. After a bottomless fall the stock trades at 3 NOK. Fredly and the other shareholders have lost 96% of their investment.
-Should get focus
Fredly initiated the 4th of January a process against Oslo Børs, Finanstilsynet (Financial supervisory) and SEC to get an external investigation/inspection of the company, and after publishing 2017-reports he has noticed new issues he thinks Stock exchange and authorities should investigate.
This is put in an e-mail Fredly sent to O.B and the company’s representatives. One of the issues he focuses on is a sudden impairment/write-off of receivables:
“SIAF has suddenly booked a big loss on receivables, bigger than the value of the whole company” says Fredly. He refers to that SIAF booked 14musd in 2017-report, only 3 months after the Q3-report where the following was stated:
“Provision for doubtful accounts as of Sept 30 2017 are USD 0” (Note 2,15 in Q3 report 2017)
“This loss clearly shows that it should be focus towards the accounting-principles as well as an external investigation/inspection should be obliged” says fredly.
-Credit as equity
Fredly has for a long time noted that it must be errors with SIAFs reports since the market values the equity at only a few % of the booked equity in the reports.
Now he questions other sides of the accounting. He mentions that SIAF has used “unused credit-facilities” as equity. “I am strongly questioning this kind of accounting policy which strengthens the requirement of an external inspection of the company’s accounts” he writes in an e-mail to O.Børs.
He has repeatdly criticized the practice with the loan facility that forces SIAF to print new shares as the share falls. He repeats this now.
