Quindell Portfolio – Lucien Miers v Richard Jennings of Titan Inv Partners

I have just read the so called short seller Lucien Mier’s latest missive on Quindell Portfolio in which he states that he has increased his short position in the stock. I am a happy & willing counterpart to that particular trade at the current price!

At the present stock price of 13.75p I fancy that this week’ AGM will be an opportunity for management to set the record straight on a number of points and that there could actually be a decent rally around the corner with sellers appearing to be exhausted in recent days.

Having actually read the lenghty Gotham missive, I do believe that there are indeed some very serious points within there that will take some difficulty on the part of QPP’s management in answering. The cash conversion issuing being the primary problem for the bulls. The next 6 months will illustrate whether the revenue receipts do actually convert into cash… What I do believe however is that at this level, the upside looks more than the downside to me and so I have taken a modest personal position on the long side at 13p.

Additionally, this quote here only 2 months ago, if untrue, will either have Rob Terry’s head rolling or he’ll go to prison if it is blatantly fraudulent – “the Board is confident that the upper end of market expectations should be achieved for the full year for 2014 and that current expectations for cash generation shall be exceeded in 2014. It is now clear that in due course, the opportunity to deliver a multi billion pound business generating significant profits with associated positive cash flows is within our grasp, subject to leveraging the significant market lead available to Quindell.” I do not believe Mr Terry to be that stupid.

Look no further than this chart here to see exactly how our fund holders in Titan have done through being invested with us:-

Past performance is not necessarily a guide to the future. Returns are gross before application of our performance fee. 

Clear disclosure – Richard Jennings is presently long QPP. This piece should not be taken as an advocation to buy (or sell) these instruments and you should always take independent financial advice in relation to your own circumstances.