The rumours, speculation and innuendo surrounding the Resilient stable of companies – which include Resilient, Fortress, Nepi Rockcastle and Greenbay – all came out into the open on Friday following the circulation of a “leaked” research note prepared by 36ONE Asset management and another prepared by a team of analysts from Arqaam Capital.
Resilient acknowledged the presence of the report via Sens just after the close on Friday: “The report was published and disseminated anonymously, but authorship of it has been confirmed by 36One Asset Management Proprietary Limited (“36One”) who are said to have a large short position on companiesidentified in the report. The content of the report and its dissemination follow a campaign of rumour and innuendo undertaken against the companies since early January 2018, when the short selling of the company’s shares became evident.”
The JSE stated that its Market Regulation Division had been reviewing trading in the shares of the Resilient stable since early January due to the volatility of its share prices. The exchange said, “it would be taking the contents of the report and any further statements made by the Resilient group on the report into account in its review of the trading in the Resilient group shares”.
Des de Beer, the CEO of Resilient, told Moneyweb on Friday that the company would be comprehensively responding to the report early next week.
Cy Jacobs, the founder of 36ONE, confirmed to Moneyweb that an older version of its internal research on the Resilient Group that was not intended for publication had been leaked. The company is investigating how this occurred. Jacobs stressed that investors should not rely on the report for making decisions as to whether they should buy or sell the shares.