Property & Infrastructure Funds REIT: RURAL FUNDS (ASX: RFF) - Accusations of fraud

Hope no one was too badly burned by this. 42% down shortly after open and now in a trading halt.

Report via https://www.bonitasresearch.com/company/rural-funds-asx-rff/

 

Ah yes, I recall a poster talking this one up. A real D-K case. All that glitters is not gold.

 

RFF reply..

https://www.asx.com.au/asxpdf/20190807/pdf/44796fvhk7f89x.pdf

 

It appears the 2 other Australian Listed companies targeted by this group are pretty much worthless now;
Quintis went from $1.41 to $0.295
BlueSky Alternative Investments went from $11.43 to $0.185
I understand they need to make the companies sound as bad as possible as they have an interest in the share price declining but that doesn't necessarily make them wrong.
Interesting response from RFF - I wonder if it was enough?

 

It may have just been one poster, but I recall RFF being frequently spruiked here so it felt like more.

It was enough for me to check it out. And the returns looked good.

Fortunately my sloth and distrust of unlisted RE funds prevented me from making a very expensive mistake.

 

Probably need an independent audit to hold any real credibility with the market?

 

These guys targeted CTD too and were found to be full of crap.. They are unethical shorters, profit from muck raking and spreading misleading in formation. You have to wonder about their motives and intentions with the repetitive use of panic inducing verbs like nefarious, fraud, siphoned, incestuous, fake, fabricated. dubious. I sold out at RFF in June for $2.30, might try to get back in at 50c tomorrow.

 

It doesn't make them right either they can sink companies on misinformation they don't care if they are wrong or right as long as they can cause panic, that is their aim and all they care about unfortunately **** sticks.

 

Lucky

 

Hold on. Weren’t you the person spruiking RFF?

 

Wow, from them being a long term buy and hold to selling.

You dropped off them pretty quickly, what was the reason?

Fargo, 2nd Mar, 2019
You haved MISSED THE POINTt the companies I mentioned RFF NDQ IXI as they are set and forget buy and never look at again.

Peter Thornhill 2019

Fargo, 12th May, 2019
I wouldn't invest in VAS it holds about 270 companies I wouldn't invest in and some I bailed out off with the price spike when they entered the top 300. I wouldn't invest in the 300th or even the 30th best company. If I have 4 companies to invest in I want the 4 I consider the best and have highest conviction in. Wouldn't use bonds, I use positive cash flow property as security to purchase shares, if the shares go South I still have the property that growing at up to 15% ( doubled in the last 5 years) which will more than offset a complete wipe out of shares. For a long term property REIT I am invested in RFF. If I was less risk tolerant I would include that in the 4. though I have similiar direct exposure. I also have CGC which is in a way similar. Attack is the best form of defence. One company making 1000%, will make 3 companies of equal weighting loosing 100% unimportant, but the chances of more than one going under are very low.


If you were only allowed to choose 4 ASX holdings - what would you choose, and why? [ASX Shares]

 

I believe their motive is to make money.

I'm assuming from previous posts that is your motive too.

They make money by shorting (in their opinion) unsustainable companies. In other words they bet they know more than the market.

You, again from previous posts, try to make money by doing exactly the same thing - betting you know more than the market.

Given Australia's strict Laws, I would think the onus is on RFF.

 

Yes I was spruiking it for anybody who wanted dividends. It is a very sound investment for somebody who wants a safe consistent dividends. I never said it would give the best returns.

 

I sold because after receiving my March tax revue in June, I wanted to put 50k into my Super so to minimize tax. and get tax free profits. I only pay 15% tax by putting it into super, I also sold because it was the company that had the least capital gain I held them because they cost nothing to hold the dividend more than cover the after tax cost the ones I bought at $1.70 gave a good return . The financial statement that has been audited is the statement you should br taking notice of. Not a statement from activist shorter who have the American ethics of say what ever you want about anybody is ok if it improves yopu situation, These guy can and will say anything to make a quick buck or even to become President. They are not subject to Australian law.

 

And to be honest some people have done pretty well,(prior to this of course) I read in June that RFF was up 145% over the last 5 years
So short sellers can *potentially* create panic in the market, cause a short squeeze on a particular company, make money on the way down AND maybe buy in when the price is low and make money when the share price recovers?
Manipulation?
P.s. RFF is up 29% this morning from it's $1.36 low, it's early days I know.

 

Did you buy back in on Tuesday?

RFF is up 30% in two days. Not a bad return in my books!!!

 

Just because I sold doesn't mean I wont hold just bought in at again in the superfund @ $1.76 to get some diversity and move some shares to more income orientation that will give some good dividends in 10 years time

 

Bugger, you missed out on 30% growth in two days .

At least you made 9% today .

 

Ive held RFF for 3 years now. Great investment.
This so called "report" was full of holes that have easily been dealt with.
Basically the report was writen by some Texan activist shorting mob who obviously dont understand australian acounting practices.

The company has stood firmly by their accounts and having another auditor Ernst Young check out the books for double clarity.

Share price recovered very well today, I expected it to maybe settle around 1.75 (NTA) however it remains at a premium to this at close at 1.92

The MD also said they were going to buy on market along with other board members and they reiterated their confidence in their previous forecasts for further improvements in NTA and up coming distributions (quartly's mind you).

All in all a great day for Share holders after the trauma.

I bought more today as well, takes me to 6.5% yield.