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Spotting the Duds

There was a good article in this weeks Investors Chronicle (31/12/2015) by ShareSoc Director Mark Lauber on how to weed out those small cap companies that will prove to be disappointing investments. Here's one quote from it: "If you don't mind throwing some babies out with the bathwater, just eliminate all resource stocks and all foreign stocks from your AIM portfolio - you'll protect yourself from a lot of losses with this simple step." He mentions one resource company he invested in that ...

Story Stocks and Purplebricks

Here is one New Year's resolution which investors might wish to adopt: avoid those "story" stocks! Paul Scott who writes a popular blog on small cap stocks for Stockopedia recently wrote "Above all, this year has taught me to stop chasing stories". He suggested it was a "virtually guaranteed way to lose money". He mentioned a few hyped up stocks that crashed back to earth in 2015 including Audioboom, Fitbug, Concha, Tungsten, Rightster and Torotrak. These are the kind of stocks that ...

The Audit of HBOS

One of the mysteries not adequately researched in the recently report into the demise of HBOS was the failure to examine the audits of the company that took place. The Financial Reporting Council (FRC) decided two years ago not to look into the audits of the bank by KPMG prior to its collapse and acquisition by Lloyds in 2008. But the Parliamentary Treasury Select Committee has now been looking into this further. Andrew Tyrie, the Committee Chairman, has already suggested the FRC ...

Lloyds Bank ECNs and the FCA

Investors in Lloyds Bank Enhanced Capital Notes (ECNs) lost the second round of their battle to stop Lloyds redeeming them at par in the Appeal Court. They previously won the case in a lower court, and are now planning to appeal to the Supreme Court. These ECNs are held by many retail investors, having been converted from PIBS issued by Halifax and the Cheltenham & Gloucester Building Society. Lloyds is apparently arguing that the wording of the conversion terms, on which basis ...

Globo Administrators Report – There’s No Money Left

The Administrators of Globo Plc have published their initial report into the affairs of the company. It makes for depressing reading. In essence one might sum it up in the phrase "There's no money left" which was the infamous wording of a note left by one UK Treasury Minister to his successor. In this case, even the secured creditors (Barclays Bank in the lead), are unlikely to get paid in full and all unsecured creditors and shareholders will get nil. The assets ...