GEM - G8 Education

[seamisty]

Legal dispute cuts into G8 net profit
Nick Nichols, business editor | July 21st, 2011


Chris Scott and Jenny Hutson.
A LEGAL stoush over a Singapore acquisition has shaved more than $2 million of G8 Education's profit expectations for the 2011 financial year.

http://www.goldcoast.com.au/article/2011/07/21/334095_gold-coast-business.html

 

[J12]

Hi All,

Am strongly inclined to agree with Seamisty, here's the link to a letter circulated to Cherie Hearts franchisees dated 13th July...

http://www.cheriehearts.com.sg/CHLetter01113Jul.pdf

Thats really interesting as there was a GEM announcement on the ASX today http://www.asx.com.au/asxpdf/20110720/pdf/41zvvyr7xrnv3b.pdf which showed a profit downgrade but made no mention of the possibility of having to return profits back to Cherie Hearts. It also made no mention of any' contingent liabilities' only a statement saying::
"The variance in the revised calendar year 2011 forecast in the consolidated group is primarily due to delayed settlement of the acquisitions in Singapore.

In addition there are one off legal due fees arising from the current litigation between G8 Education Limited and Cherie Hearts Group International (
the vendor).

In really small print it says:"# Excludes legal fees of $420,000 forecast to be incurred in relation to the litigation between CHGI and G8 Education Limited as these are considered non recurring expenses".

Anyway it was obvious the market did not like the announcement as there was a large sell off and the next bid is only for 67cents.

Might be the end of G8 divvies for awhile or are investors wary of management with all the adverse Wellington Capital/Ms Hutson media of late???
Seamisty

 

[seamisty]

Welcome J12, NO SURPRISES re current GEM management only revealing half the story!! Just ask any Premium Income fund investor about honesty, transparency and performance by Ms Hutson and her team at Wellington Capital!! I am sure most GEM investors are starting to realise just how vulnerable they are after the current media reports exposing the unacceptable tactics being exercised by WC which are directly associated with AND IMPACTING on the long suffering PIF investors. Not to mention the often 1-500 share GEM share transactions at close of trade (usually on a Friday to pump up share price). Anyway, the only thing I can see G8 has in common with S8 is legal action relating to management and the same recurring names.
Semisty

 

[seamisty]

I imagine the sophisticated and professional investors who participated in the G8 education share placement of 21 million shares at 90 cents each in Feb 2011 aren't real happy with the current GEM shareprice of 67 cents? OUCH!


http://www.aussiebulls.com/StockPage.asp?CompanyTicker=GEM.AX&MarketTicker=Australian&Typ=S

GEM.AX
G8 EDUCATION ORD
ASX
Daily Commentary
Our system posted a HOLD today. The previous BUY recommendation was issued on 07.15.2011 (11) days ago, when the price was 0.7250. Since then GEM.AX has fallen -7.59% .
A Warning is in order! The previous BUY signal failed. Downward momentum now reached to intolerable levels.

You can either wait for a new bullish alert or sell the immediately. It is up to you. We owe you an apology.

You can play the short side assuming all risk if you want to. Our stance, however, is currently neutral in this matter.

 

[Plumber1]

The price has just hit 91c which is a new low for 2011.
Whew, I think I dodged a bullet by not buying into this share. I would have lost around 10% -15% in only a couple of weeks.
There seems to be too much drama associated with this company and especially its Management team.

Wow, the price has now dropped to 72c.
I sure dodged a bullet by not buying this company. I would have lost another 20% since the above post just 10 weeks ago.

It looks like the Wellington Capital saga is affecting this company.

The last sale price on Friday was 63c. This share has lost 40% in only the last 4 months.
I am so glad I never bought this turkey. (I was given a "hot tip" in early March that it as going to $5 )

 

[seamisty]

The last sale price on Friday was 63c. This share has lost 40% in only the last 4 months.
I am so glad I never bought this turkey. (I was given a "hot tip" in early March that it as going to $5 )

Would love to know where your 'hot tip' came from Plumber1, I think the tipper must have got confused and accidentlly added an extra 0. 50cents is looking more the go. I am interested in the outcome from this months legal outcome re Cherie Hearts and G8.(not to mention Forest resort re Wellington Capital) Chris Scott and Jenny Hutson are on investors do not invest radar, I don't think they can afford any more adverse legal findings or adverse publicity. Seamisty

 

[Plumber1]

Not to mention the often 1-500 share GEM share transactions at close of trade (usually on a Friday to pump up share price).
Semisty

I had noticed that too.
There was a transaction today (Friday) at 3.45pm that boosted the price up.

 

[seamisty]

Here is a link I found on the G8 education website to a report promoting GEM, G8 education. The report was undertaken by a company called Petra Capital PTY LTD who was paid by G8 to capital raise by promoting G8 shares::

http://www.g8education.com/broker_coverage_reports/index.cfm?fuseaction=get&id=115
Disclosure
Petra Capital Pty Ltd and its associates, officers, directors, employees and agents, from time to time, may hold securities in companies researched by Petra
Capital Pty Ltd and may trade in these securities either as principal or agent. On 29 September 2010, Petra Capital raised $13M for GEM via the issue of
18.9M shares at $0.69/share, for which Petra Capital received a fee. On 9 February 2011, Petra Capital raised $18.9M for GEM via the issue of 21M shares
at $0.90/share, for which Petra Capital received a fee.

Also contained in the report is this:
GEM’s shares have fallen for three reasons:
i. Concerns over the outcome of the settlement issues
in Singaporean Cherie Hearts acquisition;
ii. The press reports about Jenny Hutson (Chairman).
The allegations of impropriety in defending her other
company’s (Wellington Capital) interest in managing
the Premium Income Fund (PIF), which has led
some to question the corporate governance regime
at GEM;
iii. The slower than expected acquisition activity in the
Australian market.
Looking forward
· In our view, these issues are now close to being
resolved and the market is likely to move on as the
newsflow returns to acquisitions, rather than problems.
i. The court hearing in Singapore is next month and it
is our view that the judgement in Oct/Nov is likely to
see GEM take ownership of the disputed centres.
ii. The battle for PIF is likely to continue, but the
allegations against Jenny Hutson were dismissed in
court.::

GEM shares have been trading between 55 and 65 cents over the past 10 days. Pays to do your own research and not rely on 'Broker Reports' that stand to make some sort of a financial gain relating to the company they promote IMO. Seamisty

 

[pro]

Updates on Cherie Hearts’ legal suit against G8 in Singapore..

Pre-trial hearing, Monday, 8th August 2011

The Singapore High Court has once again ruled in favour of Cherie Hearts Group International (“CHGI”) in their ongoing suit against G8 Limited (“G8”).

G8 tried desperately to submit its affidavit at the 11th hour on Saturday, 6th August 2011, but all attempts were in vain. The High Court Judge dismissed and disregarded their last minute affidavit at the pre-trial hearing on Monday, 8th August 2011.

At the same time, the High Court Judge also dismissed..

• G8’s application for the revenue from child care centre operations to be paid to them by CHGI.
• the need for CHGI to transfer the ownership of the bank accounts of their subsidiaries over to G8.

Another pat on the back for CHGI! Well done

Fresh rumours just out of the oven.. G8 has asked the Singapore High Court for an adjournment of the Main Trial scheduled for 5 to 16 September 2011. Looks like they’re beginning to feel the heat! They’re obviously not prepared are they? Not a good sign for them..

Wonder what trick they will come up with next?? Nonetheless justice will prevail!

Recent centre inspections

Recent centre inspections carried out by CHGI involving Cherie Hearts centres managed by G8 has revealed shocking findings. G8 has seriously flouted safety and hygiene standards and regulations as stipulated by MCYS (Singapore’s governing ministry for child care centres). Sharp objects such as scissors and pins were found well within children’s reach. First aid kits contained expired products. Food preparation and centre hygiene standards were seriously compromised. Fire escape routes were strewn with obstacles, not to mention fire escape doors with no keys to open them! Parents’ complaints have never been higher. Due to the severity of the above findings, these matters have been escalated to MCYS.

**Up until today, G8 refuses to factor in ‘Contingent Liabilities’ into all of its agreements.

 

[pro]

Pre-trial hearing, Thursday, 18th August 2011

ANOTHER VICTORY FOR CHGI

--G8’s Attempt to Adjourn the Main Trial--

As you would recall, there were recent rumours that G8 had asked for an adjournment of the Main Trial. It appears as if these rumours were true after all! The first reason being that Jenny Hutson was unavailable. Yes.. ‘The Jenny Hutson’ to appear on trial in Singapore! The second reason being that their ‘expert witness’ could not generate a meaningful report?! Well they should have jolly well thought of that before deciding to put a receivership on CHGI! This is a true indication that they had no basis for their unjust actions!

Unfortunately for G8, CHGI has emerged victorious yet again! The Singapore High Court has refused to grant G8 adjournment of the Main Trial as per their requests.

But in kind, the High Court Judge has given them a 2 day extension. That’s not going to be of much help now is it G8??

Advice/Reality check for G8:

1. You’re not playing on your own turf.. So you’re deprived of your home ground advantage, which you might have been able to master down under..
2. The Singapore Judicial System is very different, very stringent, very efficient and very fair.. You will realise this very shortly.. Doubt it will be in your favour though!
3. You can’t get lucky all the time.. In fact it appears as if your luck is already running out!
4. You can’t use the same old tricks over and over again.. You’ve obviously run out them.. Trust me, justice isn’t blind in Singapore!
5. In summary.. Suggest you just back off?!

Excellent stuff CHGI! I have no doubt you will be sending G8 packing to where they belong.. Down Under!

Updates on Cherie Hearts’ legal suit against G8 in Singapore..

Pre-trial hearing, Monday, 8th August 2011

The Singapore High Court has once again ruled in favour of Cherie Hearts Group International (“CHGI”) in their ongoing suit against G8 Limited (“G8”).

G8 tried desperately to submit its affidavit at the 11th hour on Saturday, 6th August 2011, but all attempts were in vain. The High Court Judge dismissed and disregarded their last minute affidavit at the pre-trial hearing on Monday, 8th August 2011.

At the same time, the High Court Judge also dismissed..

• G8’s application for the revenue from child care centre operations to be paid to them by CHGI.
• the need for CHGI to transfer the ownership of the bank accounts of their subsidiaries over to G8.

Another pat on the back for CHGI! Well done

Fresh rumours just out of the oven.. G8 has asked the Singapore High Court for an adjournment of the Main Trial scheduled for 5 to 16 September 2011. Looks like they’re beginning to feel the heat! They’re obviously not prepared are they? Not a good sign for them..

Wonder what trick they will come up with next?? Nonetheless justice will prevail!

Recent centre inspections

Recent centre inspections carried out by CHGI involving Cherie Hearts centres managed by G8 has revealed shocking findings. G8 has seriously flouted safety and hygiene standards and regulations as stipulated by MCYS (Singapore’s governing ministry for child care centres). Sharp objects such as scissors and pins were found well within children’s reach. First aid kits contained expired products. Food preparation and centre hygiene standards were seriously compromised. Fire escape routes were strewn with obstacles, not to mention fire escape doors with no keys to open them! Parents’ complaints have never been higher. Due to the severity of the above findings, these matters have been escalated to MCYS.

**Up until today, G8 refuses to factor in ‘Contingent Liabilities’ into all of its agreements.

 

[seamisty]

Pre-trial hearing, Thursday, 18th August 2011

ANOTHER VICTORY FOR CHGI

--G8’s Attempt to Adjourn the Main Trial--

As you would recall, there were recent rumours that G8 had asked for an adjournment of the Main Trial. It appears as if these rumours were true after all! The first reason being that Jenny Hutson was unavailable. Yes.. ‘The Jenny Hutson’ to appear on trial in Singapore! The second reason being that their ‘expert witness’ could not generate a meaningful report?! Well they should have jolly well thought of that before deciding to put a receivership on CHGI! This is a true indication that they had no basis for their unjust actions!

Unfortunately for G8, CHGI has emerged victorious yet again! The Singapore High Court has refused to grant G8 adjournment of the Main Trial as per their requests.

But in kind, the High Court Judge has given them a 2 day extension. That’s not going to be of much help now is it G8??

Advice/Reality check for G8:

1. You’re not playing on your own turf.. So you’re deprived of your home ground advantage, which you might have been able to master down under..
2. The Singapore Judicial System is very different, very stringent, very efficient and very fair.. You will realise this very shortly.. Doubt it will be in your favour though!
3. You can’t get lucky all the time.. In fact it appears as if your luck is already running out!
4. You can’t use the same old tricks over and over again.. You’ve obviously run out them.. Trust me, justice isn’t blind in Singapore!
5. In summary.. Suggest you just back off?!

Excellent stuff CHGI! I have no doubt you will be sending G8 packing to where they belong.. Down Under!

Thanks for the update Pro. PIF unit holders were all shaking their heads asking why Jenny Hutson announces on the 18th august 2011 out of the blue that Wellington Capital will be conducting another travelling road show under the guise of 'Fund Briefing Meetings' to be held 6, 7 and 8 September 2011 in each of Sydney, Melbourne and the Gold Coast. Obviously it was to clash with the G8 trial in Singapore so MS HUtson would have an excuse not to attend!! Seamisty

 

[pro]

Not at all Seamisty.. My pleasure.. Strange 'coincidence' wudn't you agree?? LOL! Like I said.. They've pretty much run out of tricks.. They're getting kinda predictable now don't you think??

VICTORY AFTER VICTORY FOR CHGI

More to.. Pre-trial hearing, Thursday, 18th August 2011

G8 also keeps using the discovery of documents etc as one of their many reasons for wanting to delay the trial and but hello?.....it has been months and they are still not ready or is it only now that they saw a need to discover documents??? They are obviously running out of tricks here........

Cherie Hearts' team of skillful lawyers resisted such deliberate delay tactics and once again won!!!! G8's application was successfully resisted!
The Singapore Courts have even ordered G8 to pay Cherie Hearts a sum of $1500.....
Bravo Cherie Hearts.......keep pressing on.
Great work......Proud of you guys

 

[pro]

G8’S ALARM BELLS ARE ALREADY RINGING FOLKS!

G8 shares plummet from 0.64 to 0.56 in a single day yesterday?!!
And if you thought that was bad enough.. Surpriseee! It fell further to 0.52 today, recording a new 52 week low!!

Honestly folks.. These are extremely worrying signs (for G8 of course)..

Are investors panicking at the sudden ‘resignation’ of CEO/Executive Director, Craig Chapman (Their trustworthy Knight In Shining Armour) who has for more than a decade been amongst the ‘inner-circle’?? Strangely enough, all this is going on just a week before the Main Trial in Singapore, leading up to which Cherie Hearts has been the forerunner of course.. Its just a matter of days now folks.. Let the games begin!

I have an inclination that 0.52 won’t stand as the record 52 week low for very long

It is evident that there is alot more going on behind the scenes.. Skeletons in their closets yet to emerge?? That I'm sure! Do share your thoughts and/or insights..

Things are beginning to heat up! And from the looks of it G8 is gonna get fried real bad!

 

[Plumber1]

G8’S ALARM BELLS ARE ALREADY RINGING FOLKS!
Are investors panicking at the sudden ‘resignation’ of CEO/Executive Director, Craig Chapman (Their trustworthy Knight In Shining Armour) who has for more than a decade been amongst the ‘inner-circle’?? Strangely enough, all this is going on just a week before the Main Trial in Singapore,

It is evident that there is alot more going on behind the scenes.. Skeletons in their closets yet to emerge??

My guess is that Craig Chapman did not want to be seen as the CEO of a company involved in dirty games...especially in Singapore where the penalties are more in line with any crimes and misdemeanors than here in Australia.

Expect Craig Chapman to attempt to put all this sordid mess behind him by claiming that he had "left the company" by the time all the **** hits the fan.
He will end up back in another of the Wellington Capital/PIF/G8 family of companies

 

[seamisty]

My guess is that Craig Chapman did not want to be seen as the CEO of a company involved in dirty games...especially in Singapore where the penalties are more in line with any crimes and misdemeanors than here in Australia.

Expect Craig Chapman to attempt to put all this sordid mess behind him by claiming that he had "left the company" by the time all the **** hits the fan.
He will end up back in another of the Wellington Capital/PIF/G8 family of companies

It will be interesting to see if Chris Scott is the next 'retired' G8 director pending the outcome of the current Singapore Cherie Heart/G8 legal proceedings??? I await the outcome with interest. Seamisty

 

[Plumber1]

It will be interesting to see if Chris Scott is the next 'retired' G8 director pending the outcome of the current Singapore Cherie Heart/G8 legal proceedings??? I await the outcome with interest. Seamisty

If you have done something fraudulent or something even slightly illegal, then Singapore is NOT the place to be.
Singapore takes those matters far more seriously than our completely incompetent ASIC and other Australian legal authorities.

 

[Plumber1]

... Wellington Capital will be conducting another travelling road show under the guise of 'Fund Briefing Meetings' to be held 6, 7 and 8 September 2011 in each of Sydney, Melbourne and the Gold Coast. Obviously it was to clash with the G8 trial in Singapore so MS HUtson would have an excuse not to attend!!

I would really like to see here go to Singapore and attend the case.
Maybe, we would not see her back here for a couple of years

 

[NOR]

If you have done something fraudulent or something even slightly illegal, then Singapore is NOT the place to be.
Singapore takes those matters far more seriously than our completely incompetent ASIC and other Australian legal authorities.

hy plumber //nor ..here i hope u were not a ...drip ...like us pif ...&took notice of likes of seamisty stay away from ..//jen..h../ any one thinking ///please please have a big look @ wellington capital ...///..fourum ....please for your sack...///better still ..................put it in the ...bank....god help us all seamisty ..chin up mate....

 

[seamisty]

Looks like senior management at G8 have been negligent in complying with the ASX Listing rules. G8 Education directors failed 'to notify ASX of
the notifiable interests of a Director where that individual ceases to be a Director by
lodgement of an Appendix 3Z, and that such lodgement must take place within 5
business days of that person ceasing to be a Director.
5. Notice of the resignation of Mr Craig Chapman as a Director of the Company was
given by way of lodgement of an Appendix 3Z on 29 September 2011. The Company
acknowledges that as Mr Chapman resigned on 2 September, the notice should have
been lodged with ASX on 5 September 2011.https://onlineinvesting.westpac.com...mpanyProfile/Announcements.aspx?stockCode=GEM'

Looks like a few major cracks appearing with G8, share price tanked to 46 cents today and that was before the please explain response.
I read in this report http://www.buysellsignals.com/10212432 that GEM Recommended stop loss is 46.25c.

 

[seamisty]

It looks like the Cherie Hearts/g8 education legal proceedings resume tomorrow in the Supreme Court of Singapore::

TUESDAY 11 OCT 10:00 AM
2:30 PM
S 211/2011 (SUM 4490/2011)
CHERIE HEARTS GROUP INTERNATIONAL PTE.
LTD. & ORS
(ALLEN & GLEDHILL LLP)
(ANG CHENG HOCK SC/ VINCENT LEOW/ JOEL
LIM)
V.
G8 EDUCATION LIMITED
(HARRY ELIAS PARTNERSHIP LLP)
(PHILIP FONG/ JOANA TEO/ VIKNESWARI)
NATURE: FOR SUSPENSION OF AN ORDER