Whilst traditional financial markets are failing to produce reliable returns, the Sports and prediction markets have proven to be the most reliable place to invest.
Billabong shares wipe out
Online PR News – 12-October-2012 –The announcement this morning by Billabong that private equity group TPG had pulled out of its takeover offer has reinforced concerns amongst small investors about the lack of transparency in the share market.
The private Sports Trading company, Sportalists Limited, has hit out at the surprise announcement by Billabong saying that whilst traditional financial markets are failing to produce reliable returns, the Sports and prediction markets have proven to be the most reliable place to invest.
Billabong is now a company trying to scramble its way out of a crisis. Investors have suffered a series of profit downgrades and, more lately, a capital raising.
Its shares have fallen from a peak of $17 to a low this morning of 84c a share. The latest debacle will only add to the concerns over investors being left in the dark.
Both parties have decided to keep tight-lipped about why TPG decided to pull out, which leaves investors whispering in the dark about what on earth has prompted two private equity groups to decide to withdraw from non-binding conditional offers within weeks of each other without an adequate explanation.
Was it the stock, the US sites, or was it something else? Or was it a difference on price? Or maybe it was something related to the private equity groups. Markets hate uncertainty and this morning's announcement by Billabong has created a breeding ground for uncertainty.
TPG informed Billabong chief executive Launa Inman, who held a snap press conference this morning to talk about the announcement. Unfortunately for shareholders, she said absolutely nothing.
TPG was equally evasive, issuing a statement which said, in part: "Board and management were very constructive throughout the process and laid out a credible performance improvement plan, but ultimately TPG has decided to withdraw from the process."
SPORTS TRADING SAFER PLACE TO INVEST THAN STOCK MARKET
According to Sportalists Asia Director, Mr Patrick Raleigh, whilst traditional financial markets are failing to produce reliable returns, the Sports and prediction markets have proven to be the most reliable place to invest.
“Trading on sports markets is more profitable and more reliable than speculating with shares on the stock market,” Mr Raleigh said.
“The sports market has more transparency and less inefficiency than the stock market, which opens the way for astute profitable trades,” he said.
“The sports market isn’t affected by the economy and there’s no intervention from outside parties like a central bank or a government that can take the investor by surprise.”
The Sportalists Club is a very private group made up of mathematical geniuses who have beaten the odds at the world's racetracks and sporting events, and have reportedly never had a losing year.
“The Sportalists Club has long been talked about as a group of the most astute sports traders in the world, who zealously protected their privacy,” said Julian Carr, a city stock broker.
“They are regarded as sports specialists whose investment universe centers on sports and prediction markets,” he said.
“Their successes are extraordinary and the profits they make for their partners are the envy of many a hedge fund manager.”
Sportalists is a private investment group.