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TWOD.N. failure and lessons to learn....

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1TWOD.N.  failure and lessons to learn.... Empty TWOD.N. failure and lessons to learn.... Sun Apr 24, 2016 8:43 pm

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Guys,
We all are talking about future of the stocks only and we are not looking back about many failures in the past including TWOD..... very recently ESL.N ...
We must go back and see what happened and many more to research.

Equitychamp, CHINWI and all the members, Please write your views about how they failed or predicted.

Thank you...

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Anyone interested??

EquityChamp

EquityChamp
Moderator
Moderator

TWOD once was a money tree and then become everyone's graveyard. They used to window dress their financials year by year and book-build the reserves then declaring massive bonuses. The share climbed to 200+ and then came the Chartered Institute resistance and after that you know.
This case is very nicely highlighted that you can't take decisions on Income Statement or Balance Sheet figures but you must look at the Cashflow statement as well because any one can manipulate IS & BS but CF is very difficult.

Joe007, we have analysing how BLI has produced their current financial reports and there is a fruitful thread on the same. Please join with us and share your thoughts as well.
Thanks

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Thank you EC for your comments.

I have looked through TWOD's last three financial statements and very very difficult to predict that this company was going to closed down.

Can you please kindly write more about TWOD and other failed companies if you can. This will teach more lessons to the members especially new comers.

I have already participated on BLI chat and also I wrote another view few minutes ago. Thank you for inviting me into the chat.

Thank you.

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Please note that Multiform Chemicals Limited has exited during the period ending 31 March 2013 which is very closely connected with Mr.Tilak Karunaratne (SEC).

There must be something behind this. Later next period SEC issued warning public holding over 90% and suspected trading. What a fraud....what a fraud.......

Public holding at the period ending March 2013 was 74.64 and in June 2013 was 90.65. My question is how the SEC allowed the main stake holder to sell at CSE to that level. SEC must have controlled and kept away from CDS due to risk of fraud or whatever. I blame directly SEC and CSE for this failure because of their inability and weakness in the stock market legality.

Guys....
Don't give up this .....please everyone try to get involve in this chat to save ourselves in the future....

Thank you.

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Please note this as well.

On 02/09/2013 more than 3% of the shares were sold and on 09/09/2013 SEC issuing the warning. Public holding on 09 September 2013 must be more than 94 to 95%.

I don't understand how this is allowed. I am sure this was done deliberately also this cannot be done simply so I am very positive that very high profiles are involved for sure.

What else we need to represent our country in to the world to attract foreign investors or to show our credibility in the local market.



Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Apart from the contents in financial reports I can write how I was studying and monitoring TWOD and how I escaped from any losses.

At the very beginning, I rejected their model and always tend to question the boys and girls who came to us to convince about lucrative future. I asked various questions and most of the times I found they talked like parrots.

Somehow, after watching how they were building their company and realising that they were actually developing plantations in Thailand I started to invest some years later.

Very importantly , investing means Not in their plantation packages , but in shares.

All those years we did not trust about the future they - and other similar entrepreneurs* - created in our minds: you give your hard earned big money to them and they will pay back big big after 10-15 years.

(* - I still call them entrepreneurs ! )

Instead we invested in shares because we saw how they build up the value in books and how the society accepted it .

At the meantime I obtained info from their Thai plantations.

I must say, even though they created questionable balance sheets , they were developing some value in the ground also. Hence upto some point they were managing it successfully, better than many other failed bond selling companies.

Hence due to these reasons I did trading some of their shares and earned in the mid stages of their lifetime.

They were selling packages / lot or bonds all over the world, mainly in Middle East, Bangladesh, Thailand and Australia and were collecting huge sum of money.

The unbroken theory is , it is the shareholders always earn in these kind of companies and not the people who inject huge money in the form of 'packages'.

With the bonus and capital gains shareholders gain in big amounts while the people who pay billions were kept in the dreaming chambers.

At the same time our players used this share to play their (dirty ?) game time to time.
Time to time some people lost some money while others earn millions in trading.

Then came the greedy time.

Managing of plantations is not an easy task. You need lot of money to manage them until they reach the mature stages. At the initial stages they had manageable area and the plantations they had were enough to cater the bonds they issued to various investors.

With the greed, they did not slow down the collecting money for new bonds at the correct time. They tried to grow more than they can manage.

The land extent they acquired in stages in various parts of Thailand to develop for their clients were becoming too big for them. Everything were going over their limitations. Acres in mid grown plantations were left neglected for years.
Secondary jungle started to overgrow the crop and some trees were fell down by wind and by encroachers. They couldn't afford to hire and manage big work force needed to give security and care in rural side plantations.

Even at this situation the marketing section were selling Thai land lots in Sri Lanka and elsewhere. Selling of dreams using young boys and girls continued and they collected more money and obligations.
When I was in Thailand - for official reason- I contacted few TWOD guys in that country to suck more info.

This is the end.

As an investor who go deep into the business I invest in CSE whenever possible, I gradually moved away from this share well before the debacle.

--
This is not for boasting but to tell new people there are things you should watch other than Financial reports and charts as Equity Champ said.

Yes, the results of the situation I described was appearing in the Cash Flow too .

EquityChamp

EquityChamp
Moderator
Moderator

To add little bit for the discussion they adopted a nice way. They interpret IAS 42 Biological Assets in their own way and started revenue recognition in a funny way.
To illustrate more simple suppose if one teak plant takes 20 years to mature and become harvestable point they estimate its radios by then and the resalable value of it. Then what they did was to bring 1/20 of that income into the income statement assuming in one year 5% of the market value has earned. Thereby they piled up revenue in double digit growth levels but cash flow was very very poor.

cruiserdude


Senior Equity Analytic
Senior Equity Analytic

Thank you for starting this thread and everyone who contributed...learning from past is the way to future.

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

EquityChamp wrote: Thereby they piled up revenue in double digit growth levels but cash flow was very very poor.

They 'created' revenue in books  but had no money to pay salaries of Thai labourers.  They realised the game end and collected more money from innocent investors  before escaping to Singapore and Australia.

In  subsequent  development, this also came into light :  (as published in newspapers)

The depositors had established that there’s no clear connections between Touchwood Investment PLC and its related companies incorporated in Thailand whose assets the founder husband and wife duo Roscoe and Swarna Maloney had promised to liquidate and pay off some the depositors.

That means they had another touchwood in Thailand which had plantation assets and TWOD PLC was not its parent !

 This suspicion was there from the beginning among some investors who read detailed annual reports but when we show it to others no one paid any interest because the share was giving handsome income .

EquityChamp

EquityChamp
Moderator
Moderator

Agreed. I think its not an insult to innocent retail investors but since the share was there to trade then we must trade. I made my first million profit from TWOD selling 10k shares @ 220/- on top of bonus issue. But had to say that was very speculative trade.

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Yes , as I said this model was  lucrative  not only for main shareholders but for many small investors  also.  

I was approached by their marketing people so many times during last two decade. Instead of paying them laks for few agarwood trees I bought seeds from Thailand and planted my own trees while investing in their shares during early years.

Later on, not only Sri Lankans , Thai people were taken on ride by them. Bad name for out country.

TWOD.N.  failure and lessons to learn.... Touchwood-Thonglor News Item:

Angry Thais, who were also scammed in the Touchwood agar wood forestry project, have stormed a police station in Bangkok demanding action be taken either by the Thai Police or Department of Special Investigations.

Thai investors claimed they had been defrauded out of 70 million Thai baht (240 million LKR) by Australian-Sri Lankan citizen Roscoe Maloney and his wife.


In addition they collected money from people in Dubai, Hong Kong, Australia etc.

Mango Business
Furthermore, another  person with same Maloney surname was doing same kind of  business using mango trees in Thailand.  
 Thais discovered  , this Pierre Maloney is the brother of Touchwood  Maloney. Not like in TWOD , he vanished within few years and website disappeared creating troubles for many people involved in his business.


http://www.andrew-drummond.com/2014/02/scam-alert-juicy-big-mango-sale.html

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Good lesson.

Yahapalanaya

Yahapalanaya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I purchased certificate or land permit in Dubai and still holding.Is there any value for this certificate after liquidation of TWOD company..

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

This bloody SEC must come forward act fast to resolve the issue. Also there are so many political involvements and recommendations in all administration in Srilanka. So why the government , SEC & CSE are not using the state power to resolve serious issue which is affecting the country's credibility.?

I heard that some of the TWOD.N investment already taken over illegally knowing that there will be no challenge. The liquidators are the big players to swallow the rest of the asset. Crazy law and investment policies.

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