The Evil Diaries: Victoria Carpets and Globo

I held 40,000 shares in Victoria Carpet (VCP) for many years and then, out of boredom, sold them about five years ago at about 250p. I thought no more about it.

That noted, I was staggered by the huge rises that have since occurred – indeed shareholders seem to have had a cash dividend of £3 a share on the way. Given that the shares now stand at £13, this is pretty astonishing.

However, the other day, it was put to me that this rise is not explicable by trading success. Certainly, there is no stock to borrow and the major shareholders have got a vice-like grip to keep it that way.

The trouble (for them) is that, one day, they will want to sell some stock. I reckon that when the 30th September interims come out towards, say, the end of November these figures will be shown to be pretty indifferent: to whom then will the controlling shareholders sell?

*****

As it happens I spoke to Gabriel Grego of Quintessential Capital (of Manhattan) perhaps six months ago. As a result the topic of Globo (GBO) came up. And, lo and behold, the report, which emerged last night and appears below, has caused trading in Globo to be suspended this morning.

Click HERE to read the report.