My wife has suggested we buy some Marks and Spencer (MKS) shares after the shares fell by 5% after a reported cyber attack. She is one of their customers and certainly the business does seem to have improved in the last year after some years of disappointing results. But on-line orders have been halted which does not bode well for the competence of its IT management. I will study it before making a recommendation but at a glance it looks a quite low-growth business with a low dividend yield so even if it is temporarily cheaper it does not inspire immediate enthusiasm.
Last week the out of the blue bad news for Argentex (AGFX) shareholders was the suspension of the shares after “the company experienced a rapid and significant impact on its near-term liquidity position, driven by, inter alia, margin calls linked to its FX forward and options books”. It clearly needs a bale-out from a trade buyer or other rescue financing. It seems obvious that they had not adequately hedged their FX positions and has come in for criticism for not getting the basics of such a business right. Even experienced investors have been caught as a result and clearly this kind of business might be one to avoid.
Another casualty last week was Pod Point Group (PODP) who announced problems with bad debts and likely takeover offers. It is clearly in major financial difficulties and needs rescuing. Pod Point provides electric car charging devices and services which at a glance should be a major new demand area. The company listed in 2021 but has lost more than 97% on the share price since then. So much for great ideas!
I recall reading the admission document before the IPO and the risk warnings were numerous plus limited information on the competitors which included major energy companies. I did not invest then on the basis it was best to wait and see and it’s been downhill ever since.
Roger Lawson (Twitter: https://x.com/RogerWLawson )
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