TPW unsolicted offer at $9.20

[Blendy]

Got a letter in the mail today from Carrington Securities offering to buy TrustPower for $9.20.

Hmmm.... what do you think? Scam or not? Seem quite high considering the current value?

[rmbbraver]

It is a scam.

They will pay you over 10 years.

http://www.voxy.co.nz/national/commission-issues-warning-unsolicited-offers-carrington-securities-and-energy-se/5/85663

The Securities Commission is warning investors to be very wary of any unexpected offers they may receive for their shares or other investments.

Over the past week, the Commission has become aware of a number of unsolicited offers, including for TrustPower shares and for units in the DNZ Property Fund.

The offers have been made by limited partnerships, Carrington Securities and Energy Securities LP of which Bernard Whimp is general partner.

Unlike earlier unsolicited offers on which the Commission has issued warnings, these offers are made at prices that appear at first sight to be above their market value. However, payment for the shares or units is deferred and wouldn't be received by the investor in full for as long as 10 years - with yearly payments being made in instalments of only a few cents a year per share.

This means that the offers are worth significantly less than may appear at first sight and may even mean that the investor will never receive the full payment if the offeror is unable or unwilling to pay at any time in the future.

The Commission has also been informed that requests have been made by Mr Whimp for copies of the share registers of a significant number of New Zealand listed companies and suspects that a large number of investors may soon receive unexpected offers for their investments.

Commission Chairperson, Jane Diplock said 'We strongly recommend that any investor who receives an unexpected offer to buy their investments takes the time to check they understand a few simple facts about the offer - including both how the price being offered compares with the market price and also when the purchase price is payable - and to seek advice and support from another person. Ideally a reputable financial adviser, but talking with the Citizens Advice Bureau or even family and friends can be a good start.'

While it is not illegal to make an unsolicited offer to buy investments, it is against the law to mislead or deceive investors into accepting an offer and the Commission is urgently reviewing the current offers in light of that requirement.

[Nurg]

The letter says "Payment of the offer price will be made in ten (10) equal annual instalments"? The person behind Carrington Securities is Bernard Whimp.

Each share is worth $7.17 today. You sell to Carrington, you get 92 cents now. In a year's time, if Carrington Securities has not been wound up, you get another 92 cents. In 2018 you will have received $7.36 - at last, more than you could get from selling on market today. But last year alone TPW paid 44 cents in dividends (correct me if I have the figure wrong).

In 2020 you will receive your last 92 cents from Carrington Securities (if it has not been wound up), making a total of $9.20. Let's say TPW doesn't do so well and only pays 35 cents a year in divs. In 2020 you will have forgone 35 cents x 9 (years) = $3.15 of dividends. So you'd be selling a 7.17 + 3.15 = $10.32 share for $9.20. And that is not allowing for any increase in share price, nor depreciation of your money due to inflation (ie, your last 92 cents is unlikely to have the buying power it has today).

Any offer from Bernard Whimp is ripping you off based on your lack of knowledge.

PS. Wrote that before I saw the prev reply.

[Blendy]

thanks for that. i was actually asking on behalf of a family member so i didn't get to read the wording (otherwise I would have pointed out the 10year obvious scam!). Right, I'll let them know not to take action!

[Nurg]

Sadly, a lot of people will get sucked in to this. A lot more people than got sucked in to his more blatant scams, which paid out immediately but were well below market value.

[blackcap]

Exactly... they will see the $9.20 and greed will cloud judgement. Actually serves them right doesnt it? IF its too good to be true.......

[CJ]

Thet proposed solution to the previous Whimp offers was to have the 'market value' clearly displayed on the letter.

How would that apply in the current sitation. The offer is clearly above the current market value. Will offers where payment is deferred for more than say 3 months have to have a NPV calc?

Should it be regulated at all - willing buyer, willing seller. Does a willing seller included someone who does it willingly but not knowing the full facts.

[J R Ewing]

Perhaps the CC will be able to find him in breach of some part of the legislation. Even if it was only a small technical breach they might then be able to go after him will the full force of the law, the consequences of breaching these laws can be pretty dire. I think this Whimp will get about as much sympathy as Clayton Witherspoon if/when he does get his day in Court.

[darksentinel]

http://www.stuff.co.nz/business/industries/4777996/Bernard-Whimp-targets-investors-again <- target at DNZ.



Whimp has also targeted shareholders in TrustPower and it’s understood he has requested the share registries of Abano Healthcare and The Warehouse, which are both refusing to supply them.

So if you hold DNZ, TPW, ABA and WHS, start thinking of how you'll reply to the Whimp.

I currently hold basically nothing, so doubt I'll see any letters.

[Snoopy]

So if you hold DNZ, TPW, ABA and WHS, start thinking of how you'll reply to the Whimp.


CEN being targeted too, @$7.60 on ten year payment terms. My solution. Send a blank form back to Whimp in the envelope supplied, but with a 'fast post' sticker attached. This will double Whimps postage costs.

SNOOPY

[Sauce]

Snoopy

Good idea, but why leave the paper blank? seems like a good opportunity to send him a message as well.

Cheers

Sauce

[Sauce]

I'm sure its been pointed out before, but I just noticed how apt his last name is.

What a poor excuse for a human being.

[stanace]

Not as apt as Richwhite.

[minimoke]

Thet proposed solution to the previous Whimp offers was to have the 'market value' clearly displayed on the letter.

How would that apply in the current sitation. The offer is clearly above the current market value. Will offers where payment is deferred for more than say 3 months have to have a NPV calc?

Some of us have been watching NZF while these whimp offers have been going on and NZF provides an interesting example of how regulation wouldn't work.

At the time of the Whimp offers NZF last sale price was around $0.095. The next bid was around $0.05. So an offer at 50% less than last sale creates some obvious issues. (and no-one was screaming that this on market bid was immoral!)

Lets say this part of the market was regulated and Whimp made an offer of $0.05 with a statement that the "current " value was $0.095. How do you regulate for intervening events. Todays sale price was $0.03. So a Whimp victim would actually have been better off having accepted his $0.05 offer. Alternatively a regulated offer would have given a false impression the stock was really worth $0.95 when in reality the market had yet to decide its value.

Of course Whip isn't about to offer on someone like NZF but once you regulate it will apply across all

[CJ]

Good idea, but why leave the paper blank? seems like a good opportunity to send him a message as well.Probably because he wont read them? And dont think of putting anything else in the envelop - remember the postal workers still need to handle it!


I currently hold basically nothing, so doubt I'll see any letters.My holdings are via ASB so assume he doesn't waste money posting to them. If he does, ASB must shread them on my behalf as I have never seen one.

[Sauce]

Thanks CJ

I can think of a few short messages that would be basically impossible not to read if written in large letters and would be sufficient to provide minor annoyance to whoever opens the letter.

Anything that would have a slight chance of dampering Mr Whimp's excitement and/or satisfaction as he opens the replies would be worth doing.

I did hear of a very effective postal prank once. Although Mr Whimp deserves to have it done to him, it's not fit for publication on sharetrader.

Cheers

Sauce

[darksentinel]

Offer to buy his TPW for $12 over 20 years.