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RFF, RURAL FUNDS GROUP
blacksheep
post Posted: Oct 25 2019, 01:57 PM
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In Reply To: blacksheep's post @ Oct 1 2019, 11:08 AM

All quiet on the war with activist short seller Bonitas - for the moment at least. Noticed recent resignation/retirement of former CFO, COO,

QUOTE
Rural Funds Management Limited (RFM), as responsible entity and manager for the Rural
Funds Group (RFF), advises that Mr Stuart Waight has resigned from his position as RFM’s
joint Company Secretary and will soon retire from RFM. Stuart’s planned departure comes after
16 years with the company during which he has held varied roles, including Chief Financial
Officer, Chief Operating Officer, General Manager – Corporate Services and most recently,
Executive Manager. The RFM Directors sincerely thank Stuart for his substantial contribution to
RFM and RFP.

https://www.shortman.com.au/stock?q=rff
Updated chart
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 1 2019, 11:08 AM
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In Reply To: nipper's post @ Oct 1 2019, 10:57 AM

Probably, but I think RFF could have handled the attack a whole lot better - especially the legal threat. They had the Qintis and Blue Sky events that should have given them some lessons on how to handle. As mentioned in this article - "Finally, think carefully about the risks and benefits associated with taking legal action.........." http://www.firstadvisers.com.au/short-atta...the-new-normal/



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Oct 1 2019, 10:57 AM
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In Reply To: blacksheep's post @ Oct 1 2019, 10:11 AM

Nice. They probably deserve each other.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Oct 1 2019, 10:11 AM
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In Reply To: nipper's post @ Sep 20 2019, 12:49 PM

RFF announced it had issued legal proceedings against Bonitas Research LLC and its principal, Matthew Wiechert.on 13 September 2019. Following is Bonitas response

QUOTE
October 1, 2019

Dear Mr. Fraser,

This is to respond to your correspondence of September 9, 2019 on behalf of your client Rural Funds Management Ltd. (“RFF”).

We are not going to spend much time familiarizing you with the laws of the United States as we assume you reviewed those laws before deciding to commence an action in Australia against an entity and person who do not do business there, and never been physically present there. You likely understand that the United States safeguards commercial as well as political speech under the First Amendment of the Constitution. You also are probably familiar with the liberal discovery policies of United States courts. To abrogate and avoid the First Amendment protections we hold, as well as to put up roadblocks toward a full airing of the financial unsoundness of your client through a vibrant discovery process, you have commenced litigation in Australia and invited us to participate. We respectfully decline the invitation. Australian courts have no jurisdiction over us, and we will contest the enforcement of any orders or judgments you obtain that certainly will be contrary to the discoverable facts, as well as United States and Texas law and policy.

However, United States Courts do have jurisdiction over RFF as a large percentage of its publicly traded shares were historically held by United States investors. In fact, prior to our initial report on August 6, 2019, United States investors had significant ownership of RFF shares and occasionally held more RFF shares than any other country worldwide, including Australia.

In light of the recent affirmation of our opinions regarding RFF’s financial precariousness by a reputable and totally independent research firm, Bucephalus Research, we are considering a defamation action in the United States against your client. We appreciate we will have to meet a malice standard, but we are more confident than ever that we can do so. Please confirm that you or your client’s Texas counsel will voluntarily accept service of a complaint which, unlike yours, clearly would have no jurisdictional infirmities.

By this letter we are not intending to participate in any way in litigation in Australia.

Very truly yours,

Matthew Wiechert, Bonitas Research LLC

https://www.bonitasresearch.com/company/rural-funds-asx-rff/

Total short positions as at 24/9/19 = 4.72%
RFF SP is up very slightly this morning 0.59% @ $1.70
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Sep 20 2019, 12:49 PM
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Posts: 6,547
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In Reply To: blacksheep's post @ Aug 27 2019, 11:34 AM

QUOTE
Units in agricultural property trust, Rural Funds Group fell heavily on Thursday, following the circulation of a Hong Kong-based report that accused its manager, Rural Funds Management, of running a Ponzi scheme.

The damning report, by advisory firm Bucephalus Research, followed Texas-based activist short-seller Bonitas Research's attack on Rural Funds Group and its manager Rural Funds Management a month before, which sent its units crashing 42 per cent..

In its report, Bucephalus said RFF units were worth $1.20 at best, while Bonitas said RFF units were "ultimately worthless".

RFM acknowledged the "critical" Bucephalus report in a statement to the Australian Securities Exchange on Wednesday. While it said the document's criticisms were "substantially similar" to claims made by Bonitas (which RFM is now suing in the NSW Supreme Court) it did not explicitly deny them.

Instead, it recommended investors rely on RFF's most recent full-year results and the Ernst & Young report that concluded the Bonitas allegations were not substantiated.

... RFF units fell more than 12 per cent on Thursday, closing at $1.71. They were trading at $2.35 before the first Bonitas report released on August 6 (and plumbed $1.20 before rebounding somewhat).

To have one activist short-seller label the company as "Ponzi" is unfortunate; to have two do so is careless.
(Capitalising costs and interest tends to do that!)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Aug 27 2019, 11:34 AM
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In Reply To: blacksheep's post @ Aug 12 2019, 01:46 PM

Subject: Ernst & Young report in response to Bonitas Document
QUOTE
On 6 August 2019, Bonitas Research LLC (Bonitas) selectively released a document about the financial
position of the Rural Funds Group (ASX: RFF) (Document). Rural Funds Management Limited (RFM), as
responsible entity for RFF, released a response on 7 August 2019 rejecting claims made in the
Document. Furthermore, RFM engaged Clayton Utz to instruct an expert to independently investigate
the matters raised and assess RFM's rejection of each of the claims made in the Document.

The independent investigation conducted by EY concludes that the assertions contained within the
Document are not substantiated. Further, EY have corroborated the response provided by RFM on 7
August 2019. The full report prepared by EY is attached.

RFM has instructed Clayton Utz to commence action against Bonitas Research LLC for its deliberate and
malicious publication of the Document, which RFM contends constitutes misleading and deceptive
conduct in Australia in respect of RFF securities.

https://www.asx.com.au/asxpdf/20190827/pdf/...wqbdnnrv2t0.pdf

Total short positions as at 20/8/19 = 3.08%
https://www.shortman.com.au/stock?q=rff
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 

sentifi.com

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blacksheep
post Posted: Aug 12 2019, 01:46 PM
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In Reply To: blacksheep's post @ Aug 9 2019, 12:18 PM

Another notable short alert on Friday. Total short positions as at 6/8/19 = 2.99%. Is the Bonitas short attack over?
QUOTE
Fri 9th Aug, 2019 2,003,722 334,926,380 0.59% 9,109,104 22.00%
Thu 8th Aug, 2019 6,972,977 334,926,380 2.08% 35,300,544 19.75%
Tue 6th Aug, 2019 2,146,176 334,926,380 0.64% 5,872,590 36.55%


SP currently $1.835
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 9 2019, 12:18 PM
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Posts: 6,791
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Notable short alert yesterday - in addition to the one on 6 August 2019

QUOTE
Thu 8th Aug, 2019 6,972,977 334,926,380 2.08% 35,300,544 19.75%
Tue 6th Aug, 2019 2,146,176 334,926,380 0.64% 5,872,590 36.55%


https://www.shortman.com.au/stock?q=RFF
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 9 2019, 11:01 AM
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In Reply To: blacksheep's post @ Aug 8 2019, 01:54 PM

True to their word - directors buying yesterday. Confident or giving the impression of confidence? Meanwhile SP hit the $2.00 mark in early trading - currently $1.955

Change of Director's Interest Notice - Guy Paynter - acquired 400,000 shares

Change of Director's Interest Notice - David Bryant - acquired 292,500 shares

Change of Director's Interest Notice - Mike Carroll - acquired 15,730 shares



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 8 2019, 01:54 PM
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Posts: 6,791
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In Reply To: blacksheep's post @ Aug 8 2019, 11:36 AM

Rebuttal to the rebuttal Note Bonitas have locked onto David Bryant's strange comment made during the webinator - note also their comments re "auditors"

QUOTE
Rural Funds Group (ASX: RFF) = Fraud

“Our strategy is to deliberately provide a lack of detailed explication.”
- David Bryant, RFF Webinar 8 August 2019

On 6 August 2019 we published our initial opinion (“Report” on Rural Funds Group (ASX: RFF) (“RFF”, the “Company” which highlighted independent evidence from RFF’s largest independent customers that suggested RFF fabricated A$ 28 million of its reported rental income since FY’17. Additional evidence suggested that RFF entered into multiple nefarious transactions with RFF Management’s privately-held business, Rural Funds Management (“RFM” to siphon A$ 86+ million into RFM at the ultimate expense of RFF minority shareholders.

On August 8, 2019, RFF responded (“RFF Response” to our allegations with a strategy of non-disclosure. Despite David Bryant’s claim yesterday to journalists that “What we will do from here is work to ensure maximum transparency with the objective being that we look after the unit holders of RFF,” investors did not receive transparency today from RFF Management.

Instead, “we will not disclose” was repeatedly echoed in Bryant’s drivel to investors which provided zero clarity to investors about our allegations of RFF’s fabricated rental income or its increased related party transaction activity between RFM and RFF in the last 3 years.

On a hosted webinar Q&A, David Bryant repeatedly fell back on the credibility of PwC to certify the accuracy of its reported financial statements. We have been in this business a long time, and remind readers that not once has there been a public market fraud that didn’t trick an auditor into signing off on its historical reported financial statements.

RFF chose to remain silent on details about its customer relationships and its asset valuations. Our Report highlighted specific transactions and customer relationships with credible evidence that suggested RFF’s reported profits and net assets were artificially inflated. RFF avoided all discussion about the specifics of its rental income, instead claiming that for competitive reasons it would not disclose additional details about its customer relationships to investors.

We highlighted irrefutable evidence where RFF disclosed its A$ 75 million guarantee to J&F to that RFF’s newly acquired “feedlots can be stocked with cattle, appropriately fed, and looked after."

If RFF’s A$ 75 million guarantee was meant for working capital, why was RFF’s guarantee immediately used to repay the A$ 30 million borrowed by RFM to acquire J&F? RFF’s Reponse confirmed that RFM received the equity benefit of J&F for free by using RFF’s A$ 75 million guarantee as a balance sheet backstop. How is that not a conflict of interest??

RFF Management avoided the discussion of its conflicts of interest that RFF Management operates both RFF and RFM, yet RFF Management owns 100% of RFM and owns less than 5% of RFF’s equity. RFF Management failed to disclose to investors how RFF Management’s lop-sided compensation structure between RFF and RFM is handled to ensure decisions are made by RFF Management to prioritize the best interests of RFF minority shareholders.

RFF Management avoided the discussion about Michael Carroll’s clear clonflict of interest as director at SHV, at RFF, and at RFM.

RFM’s business failed to generate cash from operations and has recently taken borrowings from RFF which coincided with RFM and RFM Related Fund lessees generating increasingly negative operating cash flows. Do these look like good underlying businesses to have as customers?

Based on RFF’s Response, we do not expect RFF to volunteer any details to investors that would be helpful in understanding the value of RFF’s underlying assets.

RFF stated that it engaged E&Y to conduct an Independent Review to confirm RFF’s reported financial statements. While this sounds like progress, if E&Y is paid by RFF to perform a voluntary review reported directly to, and paid for, by RFF, then how is RFF’s proposed Independent Review supposed to actually produce any independent findings? What the hell is the difference between E&Y’s Independent Review and RFF paying for a second certified audit opinion?





--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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