GMG a widely followed stock on TMF.
Todays results were not particularly great but they were not the end of the world either! What really caught a lot of peoples eyes were the departure of the CEO And COO.
Lisa Morgan has stepped down from her role as
Chief Executive Officer ("CEO"). Lisa had indicated her desire to step down to
pursue other opportunities.
She spent 14 years in the business and the departure seems sudden and abrupt!
I have watched this stock with interest and it was only a few days ago when certain investors said they were in for a quick 50% despite what is a business that does'nt look healthy longer term as people will with time turn to downloading games of the net where it would be cheaper then spending £40 for a game!
What JTCod has unravelled in the last half hour or so....
On the 12th of January the company said
We will continue to exercise strong cost control disciplines with effective management of the portfolio
and infrastructure. The Group has a strong balance sheet, with net cash as at 31 January 2010
expected to represent an increase on the prior year.
In the results from 2009 they said :
Our net cash position as at 31 January 2009 increased to £81.4m (2008: £42.1m). The Group continues to
be very cash generative and has a strong balance sheet.
In the results published today the company said
Our net cash as at 31 January 2010 was GBP44.9m compared with GBP81.4m in the
prior year. As noted above, the decrease reflects a change in the timing of
supplier payments around the year end, and stock holding for January releases.
I find this INCREDIBLE! I honestly can't believe you have companies which have been trading for a long time & have been listed on the stockmarket a very long time make such serious errors as this! One would think they would read and then re-read and then read again whatever statements they publish to the markets!
What makes it worse is they don't seem to be upfront about their error, I find that very frustrating!
One does have to question the numbers on the Financial statement and as well as the auditors opinion...
The CFO should and most likely will follow the door out ... another slump for the share price. What an absolute shambles....
And for those that are talking about a takeover etc I have been around long enough in this Investment game to know it is not worth buying stocks with the hope they will be taken over!
Buying sound businesses that are sustainable in the long term is a much better strategy.......