“Our share is a very cheap stock” – Business Week

Trig Social Media, the Swedish multi-billion dollar company which is listed on the Frankfurt Stock Exchange reviewed by the Economic Crimes Bureau in Sweden and the FSA in Germany, while auditors have resigned after being questioned throughout the business. To reply CEO Phillip Cook at some of the issues surrounding the company.

The Business Week has unsuccessfully sought Anthony Norman, Chairman of Swedish multi-billion dollar company Trig Social Media is listed on the Frankfurt Stock Exchange, for comments that the company is now being investigated by the Economic Crimes Bureau and PwC prematurely dropped out of all assignments after a review that questioned the entire operation.

However, the company’s CEO, Phillip Cook , previously answered questions included in the Publisher’s extensive review of the company.
How he replied, March 9, 2015:

VA: You promise in a number of documents that it would be an independent valuation of Trig Social Media before listing on the Frankfurt Stock Exchange. Has such established and if so, where and how has it been published?

PC That is correct. The company was valued by an independent and regulated firm. This resulted in a valuation range that helped the Board to set the first price range for its shares. The valuation was not published because the valuation company did not want to disclose his work when it was performed by using their proprietary tools.

VA: How did you come up to € 1 billion was an appropriate valuation of Trig Social Media?

PC The valuation is based on the independent evaluation and discussion with the company’s various advisors. An important consideration was that the valuation should follow the methods used by similar companies in our industry.
Values ​​of social media is high because based on the lifelong value of a number of connections (users) and the tools used when determines the value of these.
In our case, we chose to use a lower figure than what is customary in the industry because we wanted to be more conservative. We were considering, for example, the valuation of Facebook at P / E (price relative to earnings / share) 70 or LinkedIn elapsed from the p / e 400 to 662. We also looked at the valuation of loss-making companies like Groupon and Twitter.
Today one can see that the valuations of other companies follow the same pattern, and many receive financing at similarly high values: Snapchat, Pinterest.
This shows, once you are familiar with the underlying financial plans that our share is a very cheap shares.

VA: It looks in the prospectus as if you met the Frankfurt Stock Exchange ownership diversification requirement of 25 percent, but on closer inspection, at least two of the new holding companies formed just before the note, and three of them looks to have links with you. How do you explain it?

PC The company’s share structure (ownership) and all regulatory requirements and the conditions were met and fulfilled through the due diligence process involving all stakeholders.

VA: How do you explain that the share price is stable, or even strengthened, after a statement showing the company lost three-quarters of sales?

PC The market sets the price of the company’s shares, but what we can say that our share price has followed the price movements for our industry in Germany (Xing), and generally in other markets.

VA: How do you explain that the traffic numbers that you published for Trig.com in a press release in July 2013 (see article) weakened to 2146 in Sweden and 178,603 in the world according to the same source (Alexa)?

PC : Trig Social Media has never published any traffic figures what I know (Alexa). We have many sites and many social media connections that we own and manage and a single digit would be meaningless today.

On March 26, 2015, Business Week further response, but this time via the Trig Social Media’s lawyers Zeller & amp; Seyfert in Germany.

VA: Social Media Investments Ltd, which is part of the diversification of ownership (free float) of the Prospectus looks to be Phillip Cook’s company registered in the United Arab Emirates. Is that correct?

ZS: Yes, that is correct.

VA: Who owns the other companies included as the owner of the prospectus and are included in the free-float?

ZS: They are owned by various private investors who financed Phillip Cook during the start of Trig Social Media. Nordic Company and Southern Company manages employee stock options.