Patisserie Valerie

dealer_wins

If the shareholders get back 20% of last weeks value they have been lucky!

I would expect to get sweet FA though

Zola.

veryintrigued wrote: »

What do you think has happened to the dough?

I'll go against the grain, and say it is looking gloomy. At yeast the truth will come out.

Getting out in time before all of this would have been worth its wheat in gold.

System

veryintrigued wrote: »

What do you think has happened to the dough?

I doughnut know!

londoninvestor

Zola. wrote: »

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

He's not sure whether what he's done is a crime or just a torte.

DesmondT

So, it now looks likely that the Company will survive (touch wood). Assuming the cash flow problems are sorted then I think there are grounds for optimism that the share price will recover in the longer term - would expect it to be way down next week though. Hats off to Luke Johnson for putting his hand into his pocket - though it's a shame he allowed this to happen in the first place.

It does irk me that only institutional investors had the option of buying in at 50p, but I guess given the urgency of the situation there was little alternative. If there does turn out to have been fraud or culpable negligence then I really think existing shareholders should be compensated - but I'm not holding my breath.

And please please please - no more cake jokes!!!

jimjames

OldMusicGuy wrote: »

Indeed you do, but as someone that worked in finance for several large corporates, I can tell you some sail pretty close to the wind.

Even a company as large as Tesco isn't immune from accounting issues

DesmondT

Remember the saying: if it looks too good to be true it almost certainly is.

I don't think it did look too good to be true - solid growth but nothing incredible.

Alexland

Thrugelmir wrote: »

As the company is essentially worthless.

Sure any new investment will dilute existing shareholders but it's not worthless - it seems to have a good business model that delivers what customers want in a way that should be profitable. There are probably a lot of concerned employees wondering what happens next. I am pretty confident it will be saved.

Alex

londoninvestor

Alexland wrote: »

Sure any new investment will dilute existing shareholders but it's not worthless - it seems to have a good business model that delivers what customers want in a way that should be profitable. There are probably a lot of concerned employees wondering what happens next. I am pretty confident it will be saved.

Alex

They're obviously being cagey about exactly what happened. But I guess existing shareholders should "hope" (funny word for the situation) that the underlying business was profitable; miscreants were siphoning off cash from it; and the accounting irregularities were there to disguise the pilfering.

The less good scenario would be that it was an intrinsically loss-making business and the dodgy accounting was there to hide that.

However, at least some people who know more than we do have been prepared to lend and to buy equity, so that may be a little cheering.

kidmugsy

Thrugelmir wrote: »

The greater the return sought the higher the risk that must be undertaken. Is that better?

I think it's better, as long as you also acknowledge that the nature of risk is that you also may get an unusually low return.