Final Word from Thursday, April 14, 2016

People who have lost 99.9% of their investment in NWR since the IPO in 2008 can't say they weren't warned. The prospectus for the share issue laid out all the risks over 27 pages. Such warnings are standard fare in a prospectus. So what can we expect to read when Daniel Křetínský's EPH issues such a document for floating a minority stake in EP Infrastructure? That EPH was created through a series of complex transactions, some of which were with state-controlled entities, and that these transactions could end up being challenged or unwound in the future? That EPH will use the proceeds from the IPO to buy back the 20% stake in EPH held by Biques Ltd. of Cyprus, whose beneficiary owners will not be disclosed and which may or may not be the investment vehicle of "politically exposed" Czechs who were on both sides of the table in the acquisition of some of EPH's assets? That except for these caveats, it's a great investment opportunity? [Czech Republic initial public offering J&T New World Resources OKD]

Glossary of difficult words

laundromat - an establishment with coin-operated washing machines and dryers for public use;

IPO - initial public offering;

prospectus - a printed document that advertises or describes a school, commercial enterprise, forthcoming book, etc., in order to attract or inform clients, members, buyers, or investors;

standard fare - something that is normal, routine, or unexceptional;

to float (shares) - to offer for sale on a stock exchange;

to unwind (a transaction) - to undo or reverse;

caveat - a warning or proviso of specific stipulations, conditions, or limitations.

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