Patisserie Valerie

Malthusian

DesmondT wrote: »

But I do think I have a right to expect a Company to provide accurate and truthful accounts for me to base my calculations on. Am I being unreasonable?

No.

(character limit)

Uxb

You are not being unreasonable - However...

The sad reality is that for a company in serious trouble or for a company with undeclared 'issues' that expecting to to find advance warnings/indications in the accounts of these is unlikely.
In short if there is fraud in the company then the accounts are likely also be fraudulent.

Read up about the "accounts" of Enron - OK it was in USA, but same principle applies all looked rosy until the day they went bust.

Of course all this as usual ends up leading back to the auditors who are expected to find any dodgy dealings. Never mind I'm sure "Lessons will be learned" and everyone will continue as before.

Nick_C

DesmondT wrote: »

I did my research, studied the books (via Stockopedia), understood the business and invested a modest proportion of my fund over the last. year.

Malthusian wrote: »

You invested in a single share, which you knew (as you did your research) had a risk of 100% permanent loss, and that risk has come to pass.

Are you saying individuals shouldn't buy shares but should only buy funds or gilts? I disagree! If you have a reasonable sum to invest, it is perfectly possible to spread your risks and have a diversified portfolio without paying a Fund Manager to do that for you.

Malthusian

Nick_C wrote: »

Are you saying individuals shouldn't buy shares but should only buy funds or gilts?

No.

I disagree!

With whom?

Nick_C

I disagree with what I thought you were saying!

So what is your point about OP investing in a single share as part of a larger portfolio?

Alexland

As expected, looks like a rescue plan is being formed

"The company aims to raise £15m from selling new shares on the stock market. Chairman and largest shareholder Luke Johnson will put in a further £20m in the form of two separate loans to pay off urgent tax bills due to HM Revenue & Customs and keep the lights on."

https://www.telegraph.co.uk/business/2018/10/12/patisserie-valerie-seeks-15m-stave-collapse-finance-director/

Alex

Linton

Nick_C wrote: »

Are you saying individuals shouldn't buy shares but should only buy funds or gilts? I disagree! If you have a reasonable sum to invest, it is perfectly possible to spread your risks and have a diversified portfolio without paying a Fund Manager to do that for you.

Rather difficult if you want to invest globally. However if you do want to invest in individual shares perhaps itwould be sensible if you invested no more than a sufficiently low % in any one share so that you could merely shrug your shoulders should it go bust. This is surely essential if you dabble in AIM shares.

Nick_C

Linton wrote: »

However if you do want to invest in individual shares perhaps it would be sensible if you invested no more than a sufficiently low % in any one share so that you could merely shrug your shoulders should it go bust. This is surely essential if you dabble in AIM shares.

Completely agree. Still don't understand what Malthusian's point was though.

Zola.

I'd say the Finance director is crêpping themselves right now.

DesmondT

"The company aims to raise £15m from selling new shares on the stock market. Chairman and largest shareholder Luke Johnson will put in a further £20m in the form of two separate loans to pay off urgent tax bills due to HM Revenue & Customs and keep the lights on."

In terms of the mechanics of this, will these new 50p shares be offered to existing shareholders first - or is that not allowed?

Thanks