Hi Brily,
I feel for you because of your lossesyoung and would like to offer a view because you said you don't know .
This ASIC argument is complicated and imo, without more info hasn't got much hope, I'm no lawyer but have my own reasons why I think that.
1. Guidance is exactly that, it's what SGH thinks will happen into the future it's no way a certainty like audited books are meant to be. It's the Directors best guess basically, no-one knows the future .
2. Companies need to attract investment, they need to give a presentation to raise funds, to be able to turn an idea into reality, they need to explain to investors what they THINK will happen, how much money they THINK they could make etc. If you stop these things there will be no investment, new companies like Facebook will never be born etc.
3. Just because a Director says or thinks they will make billions doesn't mean they will .
4. You can't write a piece of Law that let's companies / directors give guidance and projections and then lock em up if they miss, no-one knows the future. They only get locked up if you can prove in court purposely mislead basically which means in this case you need to know when they knew they had stuffed it up beyond repair before one can move forward .
5. Investors need to understand companies CAN and DO fail, no Law can stop this .
6. Investors need to understand the market values / works on a forward basis, I.e The market is always betting on what it THINKS will happen in the future, not what happened at the last set of accounts.
7. People old or young are silly to think this game is easy and if they can't set Stop Losses and don't understand business and how the market prices shares they shouldn't have a stab in the dark and blames others for the RISK they chose to take .I bet some don't even think they're taking a risk investing shares or even AU first mortgages paying 7pc .
8. Investing in shares means your competing with brilliant brains, real thinkers, your pencil must be sharp.
9. Most people are better off not even trying, and probably best to stick to etfs or managed funds or something, not things like storm though that can use your funds and assets to borrow money with , they be risky.
10. Life's not perfect or fair, it is what it is.
Best Wishes
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