Value Ideas Blog
HQ Life and the Story of the Fake Sheikh

Please don’t buy or sell stocks on recommendations of anyone especially not via phone and through a “cold call”. This post is just for education and the authors don’t have a position (long/short) in the stock. We are only trying to state the obvious facts. Always do your own research.

 

In this (somewhat unusual) entry, we want to tell an interesting story that is still relevant. A couple of months ago, a friend of us informed us about the company HQ Life, asking  if we knew anything about it. After a short look we told him that we have never heard of the company before. As we were very busy at this time, we didn’t ask him for more information. Than after a while, he told us that he himself bought some shares and that his father would have some insights. When I met him, I asked him about the insights and he told me that his father was called several times and he was told where the stock would trade at point x and point y and like a wonder, the stock price ended up at exactly that price. The guy on the phone told him he would only earn money if he would send him 5% of the return after his father had sold his shares. This would happen on a trust basis and if his father would not do it, he would be not informed by the company (BAH Consulting) anymore.

 

After a while, his father invested a huge amount into the stock and BAH-Consulting told him that he could get “bonus shares”. The only thing which his father would have to do would be to sign an NDA (Non Disclosure Agreement) and with this inform the biggest shareholder (MCT Consulting & Controlling AG) about the number of stocks he held.

 

When we heard that, we told our friend to directly sell all shares and informed him, that this is a fraud & scam with a 99% probability.

 

After we returned home that night, we directly start to investigate the case. The first thing that hit us was the chart. Have you ever seen something like this?

 

Price chart HQ Life AG

  read more