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Gloves come off for the Resilient stable

Following the distribution of two reports and the JSE’s investigation into trades.

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.”

Read: What is the Resilient stable accused of?

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.

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I believe these are all REIT’s. I have made my views very clear on these – buy at your own risk

Robertinsydney – Are there any securities that you can buy at someone else’s risk?

No they are nor REIT’s – They don’t have to distribute rental income – The problem is all the property stocks are crashing – Even the SP 500 trackers – But there seems to be a lot of dodgy dealings in the SA property stocks – The so called directors of these companies should be held personally liable – There seems to be no consequences for rogue JSE directors or accountants or so called fund managers.

According to their SENS this morning, they are a REIT. It’s quite a substantial SENS, and to be fair, it appears to quite clearly substantiate why the 30One report is invalid.

Resilient (excuse the pun) is a REIT – Not the underlying companies like Greenbay and NEPI etc – Will be interesting to see how this plays out – The SENS this morning has done little to stem the tide.

When “Robsnout from Sydney” tenders his opinion on a S.A. listed share, I usually opt for the opposite – Resilient, Fortress, Greenbay, Nepirock and some international property companies offer rather good buy-in value at current prizes. I’m a buyer for the long run.

Take these stocks back to say 2002 and then show me where the 2007/2008 financial crisis is in these stocks.

I’d rather try catch falling pianos.

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