Entain Share Discussion Threads

[latifs100] 26/5/2004 08:08

back to 6p, floation price, any news?

[sambuca] 25/5/2004 20:39

Re the companies giving these "share tips"


If you get a letter from Keirgroup holdings asking if you want a research report on HST just sign on the dotted line and return in the pre paid envolope read this first (copied from the FSA website under the heading of "share scams")

It is not on the FSA register so they might be all above board but they might not!

Share scams

The Catch

Sounds obvious but if a stranger rings you out of the blue and tries to sell you shares in companies you've probably never even heard of - TAKE CARE! They may be part of a financial scam using hard-sell tactics to persuade you to buy shares. If they end up persuading you to buy, they'll be the ones laughing all the way to the bank. And you may be left with potentially worthless shares and no rights to complain or claim compensation from the UK schemes.

But surely financial scams would be closed down immediately by the regulator? Well, yes they would if we found they were operating from within the UK. Firms selling shares have to apply for a licence and abide by rules designed for your protection, otherwise they're not operating lawfully. BUT WATCH OUT! These rules are not identical abroad. Financial scams based overseas are able to communicate with anyone anywhere in the world and could be targeting UK investors.

The first time you hear from such firms could be by post or e-mail, or they might advertise their services over the internet. They may offer you a free research report into a company in which you hold shares, or a free gift or a discount on their dealing charges.

The scenario may follow this pattern. You'll probably be an investor in smaller companies (often called penny shares). Therefore, your name will have appeared on the share register of the company you've invested in - which anyone can get hold of. Then surprise surprise, you'll receive a mailshot making you a great free offer. Sign on the dotted line and you'll receive a free, independent research report outlining future prospects for the company.

"Nothing to lose" you think. "And it's free". So you sign on the dotted line and send your response in the freepost envelope - but don't worry, it must be OK because its got a UK address and so if anything goes wrong, you'll be able to complain.

What you haven't realised is:
By signing on the dotted line, you have probably agreed to be contacted by the firm in the future. This was probably written in the small print of the mailshot.


The UK freepost address on the return envelope may simply be a forwarding address to an overseas address.

What happens next?

You'll start to get flooded with calls offering you a great deal on shares, often in smaller companies you may not have heard of or possibly other investments such as futures, options or foreign exchange. The firm's salesforce will probably sweeten, cajole, flatter, bully and even sometimes threaten you to take up their offer. Don't forget, they probably make a commission on every sale. After buying the shares, you may have difficulty in getting the shares or their certificates. And when you try to sell them, you won't know if the price is fair - or you could find the price is inexplicably lower. If you do manage to persuade the firm to sell your shares for you, you may have difficulty getting the proceeds from the sale or be put under a lot of pressure to buy other shares with the money.

Companies based outside the UK and which are not authorised persons are allowed to advertise their services in the UK, but only if their publicity is approved by an FSA-authorised firm or an exemption applies which allows them to advertise their services without such approval. In the UK, firms are generally not allowed to 'cold-call' potential customers to sell them financial services. If, however, you initiate contact with the firm, a follow-up phone call does not count as a cold call.

How to protect yourself


Always check whether the company is authorised in the UK. Ring the FSA Consumer Helpline 0845 606 1234 (calls charged at local rates) to find out or look at the online FSA Firm Check Service. If it isn't, take care. You probably won't have the right to complain or seek a penny in compensation from the UK regulatory system if things go wrong.


The FSA has published a warning about firms that it is aware of that operate this way.

However, be aware that this type of firm is likely to change its name frequently so if it does not appear on these lists do not assume it is genuine.

If the company is not authorised in the UK, then look carefully to see where the company is registered. Try and check whether the company is in fact regulated in its home country. If it is, try to find out as much as possible about how regulation, ombudsmen and compensation works there.


Financial firms authorised in a country in the European Economic Area (EEA) can offer certain products or services in any other EEA country if they have a 'passport' that entitles them to do so. Such firms will be regulated in their home country and meet standards which have been agreed across all EEA countries. However, if the firm becomes insolvent and you have a claim for compensation, you will need to deal with the relevant authorities overseas.


Read the small print. If you had, you would probably find that you had expressly agreed to receive calls from the company. And even if you think you're immune from such high-pressured selling tactics, you'd be surprised at just how many people give in - simply to get rid of the caller.


If you do decide to go ahead and buy the shares, at least try to check the current price in the financial press or with a broker. These firms may be acting as bucket shops, buying in shares from other brokers. If they do so, you may not pay the market price for the share. Even though they will be trying to get you to make a decision quickly, still try to find time to do your own research before buying - look on the company's website if they have one, get hold of the annual report and read the financial press.


If you decide to go ahead, be aware that it may be difficult to get evidence or confirmation of what shares you hold from the firm - and it may be even more difficult to sell them when you want to.


IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!


What can happen

In one recent case, a consumer received a "cold" call from a company he had not previously had anything to do with and was persuaded to buy shares in another company. Later on he received some paperwork in the post, including a 'stock purchase agreement'. This mentioned two other companies and claimed that one of these companies was FSA-authorised. When he checked with the FSA, he discovered that the company was not authorised and that the FSA Register number was false. He told the FSA what had happened and FSA enquiries revealed that the investment was entirely bogus and that the address was false. This particular individual was saved from losing a very substantial sum of money.

Always check whether the company is authorised in the UK. Look at the online FSA Firm Check Service to find out or ring the FSA Consumer Helpline 0845 606 1234 (calls charged at local rates). If it isn't, take care. You probably won't have the right to complain or seek a penny in compensation from the UK regulatory system if things go wrong.

Sam

[ellemaitch] 25/5/2004 07:41

chapchip : ive had loads from HB and all but one has been duff at the price they recommend .I wait a few weeks and normally get in alot cheaper . if i bother at all . I was offered a company called AQUILO last week and told it was good to get in to . Problem is all the questions i asked could not be answered , didnt seem like the research done was that thorough

[cowls] 24/5/2004 18:24

Hopfully with the big sell out of the way it can start to recover ;)

[chapchip] 24/5/2004 16:57

this share is the pits....red tip to me by Hoodless Brennan...and low n behold ..within weeks i m 50% down!!!!!!!!!

[double6] 24/5/2004 13:58

Obviously it caused the 30% drop - since then MM BUY of 100k - wouldn't be surprised (IMHO) to see us back at the starting price (9.25p) by tomorrow..

[cowls] 24/5/2004 13:12

240K sell @7p WHY?

[qfh] 24/5/2004 12:16

cant weigh this one up at all,too depressing to watch. contracts mentioned..price dropped.. no news.. price dropped. will we ever see 16p again?

[double6] 24/5/2004 12:02

Last RNS announced contract, along with a number of other contracts possible for the near future - any further news could see these bounce back to 16p where they were at their peak....

[double6] 24/5/2004 12:00

spread on TDW 7.5/7.55 - definite buy (IMHO) at these prices....

[gvaughan] 13/5/2004 21:04

sir keith
cheers only heard Edelson had been involved in similar successful start ups which is why I'm sitting and waiting ,shame he's a ManU director though.
gv,

[sir keith] 13/5/2004 14:25

gvaughan
His name is Edelson and has been director of man united for 20 years. Nickname on the market is the Shellmeister

[gvaughan] 13/5/2004 13:50

chapchip// only going on what I was told may be incorrect but this info states that a guy called Eddison( correct spelling I am not sure)is involved in ENT and has had v.successful similar ventures. I'll try and find out some more. gv

[chapchip] 13/5/2004 13:46

the only eddison link here that i can see is that of the lightbulb......and it appears someone has switched then off..........

[gvaughan] 13/5/2004 13:43

pictureframe// don't yet own this one but it is on my monitor as I wss advised to consider buying at 10p due to the M.Eddison link. gv

[pictureframe] 13/5/2004 13:28

something nasty is happening here

[qfh] 08/4/2004 09:50

are we due some results(end march)?

[pictureframe] 06/4/2004 11:53

in theory they could have sold it for £1 ! Without actual numbers the city isnt interested. See its coming down again already.

Soory guys but I see sub 10p here

[qfh] 06/4/2004 10:51

cant believe theres so little interest in this! I wish I could have bought in at 12p.after all were looking at a confirmed contract signing here not just a rumour.

[pictureframe] 06/4/2004 10:48

Hi all,

Reason why it hasnt gone up is there is no mention of ££££££.

[ali_b] 06/4/2004 10:01

yeah chapchip this was the news that i thought would drive the price closer to the 20p mark when we where at 15p does seem strange that we are not higher on the day would have expected a 10% rise at least.