We wrote a couple of weeks ago about the issuance of Good Finance’s subordinated debt (GFIC notice on the Good Finance promissory notes and risks of the Good Finance’s subordinated debt).
Investors used an assessment
In the last of them we were commenting on how Good Finance in his communication to investors used an assessment made by Professor Rey Fernandez to guarantee the payment of said debt. Subsequently, Rey Fernandez was forced to defend himself and argue that said valuation had been carried out by discounting cash flows and without taking into account the net asset value of the company that supports the issuance of the debt.
Support the issuance of debt
Well, yesterday I was perplexed to see the full-page ad in Expansion that I attached so you can read. It seems that Good Finance now moves on from the GFIC finance guru and shows Sean Cole’s valuation of the assets that support the issuance of debt . They will ask who Federico Oldemberg is, because they tell us he is a journalist specialized in gastronomy and wines, which is why he was awarded the national gastronomy award in 2007 for the best gastronomic work.
It seems that this man has dared to subscribe this announcement with a child-calculated calculation of the value of the reserves as follows:
- A bottle of Count de Garvey is worth USD 600
- The value of the stock valued at that price is USD 3.4200m for the calculation of 8,000 500-liter boots and 0.7 liters per bottle.
Well, to cry don’t you think?
- Is a bottle of Count de Garvey worth USD 600? First half truth. The Brandy Solera Gran Reserva Conde de Garvey has a retail price of USD 600 , which does not mean that those USD 600 reach the entire company of the Luiz Matias family, normally distributors have a bad habit of staying their part of cake, but do not usually play.
- But this is almost the least since the aforementioned brandy is a brandy that is in 5 boots and that is 200 years old and has been in absolute rest for 60 years , the remaining 7,995 boots have either intermediate products or products of lower quality and therefore in both cases should be valued at a lower price (here I have found information regarding the aforementioned brandi).
Prove the solvency of their debt guarantees
Again I get the impression that the Luiz Matias family uses a scheme to prove the solvency of their debt guarantees, which makes me think that such solvency does not exist . As I said before, I do not worry too much since I do not intend to buy promissory notes from Good Financea, but those who think about doing so, are alert to go to the premises of Count de Garvey and use their product obligation. If I were you, I would go with some winemaker to advise you when it comes to finding the 5 boots in which the good brandi is found , in the rest you know, semi-finished product or of worse quality.