Press Statement – Short Seller Report on Silverlake Axis

Date: August 21, 2015

SIAS has been alerted to an anonymous
short seller report on Silverlake Axis circulating among the investors community. The share price has already fallen more than 20% since trading today. SGX has issued a query on the unusual price movement and shortly after, the company requested for trading halt.
It is unfortunate that such an anonymous report can have an impact on the stock as it lacks credibility. As to the accuracy of the report, it is incumbent on the Company to respond immediately on the contents of the report. It should refute, if any of the facts in the report is incorrect or misleading. The company should communicate with its shareholders immediately on the accuracy of the report. SIAS notes that this is not the first time that this stock has been under attack.

It is important for investors to know the company in which they have invested, especially its fundamentals. If the person or persons responsible for the report are found to be mischievous then the company must take prompt legal action and, if the facts indeed are found to be mischievous and misleading, SIAS calls also on the authorities to take police action. It is the small investors who always suffer the consequences. Retail investors should also exercise caution and not accept anonymous reports readily. They should wait for the company’s reply to the report before acting. It is good practice for companies in such situation to request for trading halt, as in this case, and disclose information to the investors to enable them to make an informed decision.

SIAS calls on all listed companies to be as transparent as possible to their shareholders to prevent such attacks from members of the online community who indulge in such attacks for personal gain. Companies must be prompt in responding to such attacks to ally the fears on the part of the investors and consequently avoid losses.

David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)