More on NSFG and a Little on DesertSky Marketing
NSFG
24hrs after reading the news from the forums (I've still not received the email yet), I'm still pretty darn disgusted with what's transpired. This program had the bulk of my online 'investments' and I was even in the process of making it a safe haven with a managed account.
HansG probably articulated certain parts what I feel the best in his blog entry, Paranoid Investing. Although I there were sections I didn't entirely agree with, this was what I felt echoed my feelings best, and I quote:
Since I have a somewhat large amount in here, I have no choice but to wait the 3 months out to see if they are able to recover whatever is lost. Mind you, the bulk of my money was deposited in August and it just seems unfair that I'm paying for my loyalty to them.
DesertSky Marketing
If you're wondering what happened to DSM, here's an update on what's happening. I personally do not have any worries here. To add to that, payouts were also just made from withdrawals made on Friday.
24hrs after reading the news from the forums (I've still not received the email yet), I'm still pretty darn disgusted with what's transpired. This program had the bulk of my online 'investments' and I was even in the process of making it a safe haven with a managed account.
HansG probably articulated certain parts what I feel the best in his blog entry, Paranoid Investing. Although I there were sections I didn't entirely agree with, this was what I felt echoed my feelings best, and I quote:
What bothers me most of all: I have invested additional sums of money in the last 3 months. Not only is that money now subject to the same restrictions (while not part of the problem), while we were all blissfully unaware of the problem, you allowed others to withdraw a 100% of their account in the last 3 months, while in fact there was only 30% available to them. This means that you were handing out MY money while you were keeping up appearances. You even had the balls to post excellent results!
Since I have a somewhat large amount in here, I have no choice but to wait the 3 months out to see if they are able to recover whatever is lost. Mind you, the bulk of my money was deposited in August and it just seems unfair that I'm paying for my loyalty to them.
DesertSky Marketing
If you're wondering what happened to DSM, here's an update on what's happening. I personally do not have any worries here. To add to that, payouts were also just made from withdrawals made on Friday.
posted by spectre at 11:09:00 AM
Rss Feed
5 Comments:
Hi, like you, I was also getting ready to pursue a managed account sometime soon. However I feel that things are not as bleak as they look.
Given the next 3 months are used as a recovery period, I feel the lost amounts can be feasibly recovered, if they continue along the lines of the straight 5% gain they have been able to get.
Let's use a ballpark figure of 1 million. According to what I've read, only 10% of the funds are in the pooled accounts and of that half (50,000) have been lost.
So accordingly, $950,000 is effectively used in a trade. While 50,000 needs to be recovered.
If they manage to get 5%, that would mean 1.25% as a performance fee (or as the mail suggests towards the recovery). That's 1.25% * 950000 = 11,875 every month.
Multiple that by 4, you'd get $47,500 in 4 months. That's almost a full recovery by the end of January.
That is assuming they make a flat 5% every month and no compounding. If there is compounding, which there will be, the recovery process would be faster.
Hi Harris,
Interesting take on things here. I've cooled down alittle, but still disgusted all the same. I can understand why they didn't reveal this earlier when it happened. It would have completely distroyed the business at it's infancy. At least now there is a plan of recovery, something which should and could have been done earlier.
Apparently according to those who have communicated with Ken and Paul, the losses amount to 70%, and not 50%. Apparently withdrawals in the last couple of months have drained the money.
What really worries me here is that the MA account holders would lose faith in view of recent revelations and pull out. This would dilute the amount of money they would have to work with.
Then, there is the problem of ascertaining just how much money they are working with. Right now all we have are rough percentages thrown around and from their recent actions, who can blame us for doubting these figures?
It's no wonder the forums are filled with people going on a rampage demanding answers. I personally would like to have full, complete and absolute transparency, down to the very last cent. After being lied to, conned and deceived, I think I deserve at least this much from now on.
And I forgot to add one more concern. How would all this turmoil affect Ken's trading? I hope in his haste to 'make up' the difference, he doesn't go onto some maverick/gung-ho streak. Negative trading results at this point in time would only send more jitters down the spines of those holding MAs. We, in the pool, are unfortunately already stuck as it is.
Hi, you're right. The amount left does seem to only be 30% and not 50%. I'm not in the pool, only looking to get into the managed accounts and I'm not feeling very confident of their integrity. I'm sure they are capable of recovering the money back within the next half year or so, but the way things were handled leaves alot to be desired. Looks like I'd have to write this one off my list of potentials.
Spectre, wish you all the best in getting your money back.
Hi Harris,
Thanks. I certainly hope I do get my money back sometime within the next 6 months. I don't believe they set out to scam or cheat, unfortunately they've dug a huge hole for themselves.
Barring futher actions from the authorities, especially via prodding from disgrunted members, we can only hope things turn out as they planned.
Post a Comment
<< Home