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The New Normal: From $1 Billion IPO To Bankruptcy In 6 Months
"Surprises like this are poison to the stock market, and this is one of the big surprises," exclaims the head of listing for Nasdaq's Copenhagen exchange as OW Bunker A/S - a marine fuel bunker company - went from $1 billion-plus IPO in April to bankruptcy today.
From $1billion IPO to bankruptcy in just over 6 months...
Investors in OW Bunker A/S woke up to a string of horrors yesterday.
OW Bunker, which provides fuel to the marine industry, said on Wednesday shortly before midnight that it had lost $275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Its shares have been suspended since Nov. 5 and the company says its equity has been wiped out.
Just eight months ago, investors drove OW Bunker’s shares up 21 percent in their first day of trading, following an initial public offering that valued it at almost $1 billion.
“There’s no doubt this case is damaging to investors and the stock market,” Borring said. “The stock market depends deeply on the relationship of trust between investors and companies.”
According to Niels Henrik Jensen, chairman of OW Bunker, the Singapore employee behind the alleged fraud “turned up at the company’s office and told his manager” what he’d done. Jensen declined to provide more details.
“I can’t speculate on how long this has been going on, I didn’t speak to the man myself,” he said. “We’re still not sure whether this was actually illegal -- that’s being investigated.”
...
The company said it lost $125 million through the alleged fraud at its Singapore office. Separate from that, it said it also lost $150 million following a “significant risk management loss” and has as a result fired its head of risk management, Jane Dahl Christensen.
The banks who helped bring OW Bunker to market all say they’re as shocked as anyone else by its revelations over the past two days.
* * *
And then today...
- *OW BUNKER - BANKRUPTCY ORDER ISSUED
Consequences? None of course, but one must commend Morgan Stanely as lead right underwriter on the March IPO for another underwriter diligence bang up job.
Oddly enough, nowehere in the IPO prospectus risk factors do we read: This company may be bankrupt 8 months after this offering."
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OKW Fuehrerbunker?
Underwriters win, investors lose, management claims ignorance. Any different from all the other recent IPO's (that have yet to be revealed)?
Hopefully, they still have enough left in petty cash,
for a few nail guns.
Where's kin I gets me sum dem IPOS? Momma say day be as goods de IHOPS.
IHOP is only good when you're really drunk,
yet somehow, that's never a problem;)
And poof! It's gone!
thats called price discovery
MS has their signature on the obituary.
Do they make hollow point nails yet?
And it's gone!!!
https://www.youtube.com/watch?v=-DT7bX-B1Mg
Just could not help myself. Sorry all.
if it was GS they might have been able to undo all the trades (for a second nominal fee of course)....MS sorry out of luck
Well it'll probably be a while before we get around to investigating the failure of FacePlant and Tweeter. But probably, their Bankers will be "surprised" too.
my roomate's step-mother makes $75 hourly on the internet . She has been without a job for 5 months but last month her paycheck was $20377 just working on the internet for a few hours. Get More Info... www.Yelptrade.com
Consequences? - bonuses and promotions
I know how the North Koreans would handle this.
Woof, woof...
BULLISHit.
yes we can't
Thanks for playing another game of Wipe You Out brought to you by your friendly neighborhood banker.
Fraud, yeah no surprise there and the banksters didn't know? More like knew all!
I can't think of a better reason to buy moar stawks.
Well the problem is the guy confessed. As long as no one ever confesses to anything all you need to do is BTFD
He was unable to be suicided before the confession.
YeeeHaawwwwAaarrrghh. The sound of an investor when he realizes that he's not floating high, but rather getting assfucked hard enough to lift his feet off the ground...
Jane Dahl Christensen will also be sued for fraud for pretending to be a woman for 10 years.
http://owbunker.com/staff-members/jane-dahl-christensen/
A dangerous precedent for Yellen...
good gawd ..now I'm sure the end of the world is near.
Wow - they weren't trying very hard - but they still sold $1 Billion. House of cards!
And may also be sued for impersonating the whole executive team.
Jane Dahl ChristensenExecutive Vice President – Physical
Jane Dahl Christensen joined OW Bunker in 2002 as CFO. She has worked as a state-authorized public accountant for Ernst & Young in Denmark and abroad. In September 2010, Jane Dahl Christensen was appointed Executive Vice President - Physical Supply.
ManagementJim Pedersen
Chief Executive Officer
Jane Dahl Christensen
Executive Vice President – Physical
Götz Lehsten
Executive Vice President – Reselling
Kent Larsen
Executive Vice President and CFO
Can't quite place my finger on it, but I think these people might be related.
Ernst & Young? Again? Are they going to be the next Arthur Anderson?
Jiminy Christmas!?
It's freaky deaky Dutch (- reference: Dr Evil)
LOL, like the movie, "The Producers".
People on the top take the money and run.
Fraud is the current business policy by Wall Street and other markets as well as the Central banks.
Actually would be funny if the Risk Officer flameout was due to hedging a fraudulent position and she ended up suing the company...
Winning!
Someone made a ton of money in a short period of time on that one.
HOT TIP(!!!) - I'll be starting OW Creepy A/S if someone is willing to give me $1 billion. I'll give you paper certificates in return.
Fraud with Morgan Stanley involved? Who coulda' knowed?
Bet they sold that crap to retirees and pension funds.
Another great IPO brought to you by our friends at the NYSE.
Put your hands together for a great round of applause.
https://www.youtube.com/watch?v=ayZsYbxU6vM&list=PL8VyXhTFhI7BNQ-xlRJnWj...
and it's gone....
http://www.fabuniversal.com/fab-universal-receives-notice-of-intention-t...
Maybe the symbol they chose (FU) might have been a hint.
If the company only had the magic power of money printing then all would be well...
IPO gone at 3.9 seconds.
http://vimeo.com/m/34533332
Don't blame the underwriters. We all know they are good stewards and perform the most stringent due diligence before they bring these to market.
The investors will be just fine, provided of course, that their own risk management was better than their company's risk management.
Don't come crying to me if you invest like a greedy ignorant pig.
not sure the FRAUD is ILLEGAL ....... chuckles
Thank you Morgan Stanley! Well done!
Silly companies. Don't they know the stock market is not for providing capital to new companies? How 20th century of them.
Flash backs of Barings Bank!
They were'nt around long enough to even do an initial stock buyback....
Do I hear BABA BABA BABA BABA BABA
Dot com bubble, Housing bubble,... Executive fraud bubble?
Well if its all worthless, ill buy all the shares for 1$ if no one wants them, that is 1$ for ALL the shares, not 1$ per share.
Or on that note, if you are throwing out any office furnature, where can I pick some up, I could use a filing cabinet or two.
Just made my weekend!!!!!!!!!!!!!
Surprises like this are not just poison to the stock market but reflect economic reality that everyone should be aware of. They are the reason the first goal in achieving financial security is to take steps to insure capital preservation. One thing has become crystal clear over the last few decades and that is the economic landscape is constantly changing this means we really are no safer today than in the past.
Remember one day you can be a hero and the next day a goat. One of my largest reasons for concern is I feel that many of the numbers being presented to us do not make rational sense, the "numbers don't work." The article below delves into how all of us will be vulnerable if the current financial system breaks down and has to be rebooted or restarted under new or drastically different set of rules.
http://brucewilds.blogspot.com/2014/11/capital-preservation-is-job-one.html
Yeah, that's the kind of news anouncement that you see just before "unbreakable" stock markets, that have a "new permanent level of high prices"; crash. There are other rustlings in the underbrush.
"Surprises like this are poison to the stock market, and this is one of the big surprises,"
.....'cept it's not a surprise
Morgan Stanley; the main new york office was the enabler and co-conspirator for Madoff.
See wha' i'm talking 'bout Herr Fuhrer?
Significant risk management loss.. i think he means Freeking Crooks....