1668 days ago
ShareProphets earns a small commission any time a reader who registered with Primary Bid via ourselves subscribes for one of its offers. For that reason we urge you all to sign up HERE. Normally, we spite ourselves and slate Primary Bid offers but today’s offer, Duke Royalty (DUKE) is actually a business of substance with institutional support, profits, cash generated and which upped its most recent dividend by 33%. It looks interesting.
3451 days ago
In this podcast I explain why companies that engage in fraud are happy to pay tax from the reporting of bogus profits. It sounds insane but that is the way frauds operate. My hero Sam Antar of Crazy Eddies infamy explians it suoerbly on his website and I discuss both Sam and also Quenron and what is going on here. I also try to explain how tax losses are used and applicable and will not be there to save Quindell
3505 days ago
Both companies have engaged in aggressive accounting with regard to accruals. One has already been shown to have overstated profits, managers have been fired, the forensic accountants are in and the Serious Fraud Office is now said to be looking into the matter. The other is Quindell (QPP).
There are two big differences between the two. One is that Tesco (TSCO) has admitted that it has overstated profits. Quindell is yet to fess up. The other is the scale of the overstatement. In the case of Tesco £250 million reduces profits forecasts by c23%. Quindell will book almost 40% of its revenues this year on an accrual basis. This has the scope to wipe out its stated profits completely.
But there are similarities too and most striking to me is how both companies have dealt with difficult analysts and also hard questions from the press.
