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Ramridge's Latest Blogs

Today's Sunday Times carries an interesting article on the extent of pension fund liabilities in listed companies balance sheets and impact on prices. Nothing new in this for those who study financial results. What struck me as interesting is that the report saw a ratio of pension liabilities to net assets of 50% as a marker. Anything above 50% is a amber to red flag.…

Ramridge's Latest Comments

Hi Paul - This may be off topic... As a PI I am particularly interested in understanding the signs that tell you fraudulent accounting is taking place ( I do mean fraudulent activities a la Bernie Madoff and not just bending existing accounting rules). The US SEC apparently have a Robocop -like analytical tool which trawls corporate filings to flag high-risk activity for closer inspection.…

"Presumably Deloitte, as a heavyweight auditor is applying the normal rules..." Here is yesterday's news from Canada: "Livent auditor Deloitte ordered to pay $84.8-million for failing to detect fraud" Heavyweight or not, auditors have a notorious history of either willfully closing their eyes to fraudulent activities to being coerced by management in following reporting practices to their advantage.

Recent IPOs are now definitely in the bubble cloud cuckoo land, Take for example yesterday's IPO, Horizon Discovery (HZD). Last audited reports for 2013 show revenues of £6.6m and losses of £3m. The SP today is around 205 and market cap £137m. So market value / revenue = 20 + !!!. A back of an envelope calculation tells me that , if we assume…

Hi Paul - Re; ACSO. The results for 14 months to Dec compared to 12 months to 3 Nov are puzzling. Although revenues are up, both net profits and EPS are considerably down. Unless I have missed it there is no explanation given as to why this should be.