611 days ago
A zombie firm is one that cannot even cover its band or bond interest from free cashflows. The chart below is of firms from the Russell 3000 Index, aan Index comprising 97% of US listed companies and it shows that 25% of them are now zombies. The last time that number was anywhere close was in 2001 at 17% and look how that played out. But in 2001 interest rates were being cut, now they are increasing just as a consumer slowdown means that free cashflows will be decreasing so that Zombie percentage is going to head sharply higher this Autumn.
1483 days ago
I start with a swipe at the failings of the deadwood press and the behaviour of the soccer Premier League. More on the former in a podcast on my own website later this weekend – a promise for comrade Euro Loon Jonathan Price. Then a look at Debenhams whose demise I regard as a silver lining from the Covid 19 cloud. I think Zombie firms should all perrish. But the main part of this podcast looks at Executive Greed and with firms asking either investors or the taxpayers for a bailout now is an ideal time to lance this boil.
2596 days ago
In 11 days time if no Nomad is prepared to act for the fraud Cloudtag (CTAG), that is to say to sign off on the lies it likes to tell investors, its shares - now suspended - will be booted off AIM. Unable to raise cash it will go bust. Just to placate the fools who ignored countless warnings and are trapped in this stock and to amuse the rest of us it has today made an announcement. It is horeshite natch and I offer a translation service in bold.
