Good morning. Apologies for being a little later than usual today - I sent a Tweet out at 07:19 this morning to advise that today's report would be a little late (@paulypilot on Twitter).
Yet another mis-selling scandal has blown up, this time it's relating to CPPGroup (LON:CPP), the bizarre share which looked bust, the founder tried to buy for 1p per share, then it was refinanced by the Banks, and the shares 10-bagged to about 30p, and now appear to be coming back down again.
The gist of it seem to be that CPP sold mobile phone & ID theft insurance policies which weren't worth the paper they were written on, apparently. The Banks promoted these policies in return for commission, and are now having to pay compensation to customers. So I don't quite understand why CPP is still in existence, other than if the Banks want to prop it up, so that CPP still exists and can therefore take the blame? Anyway, their shares are down 18% to 16.8p at the time of writing.
What exasperates me with all these scandals is that the root cause is the same - people trying to rip-off their customers. What we surely need is a complete change of mindset throughout business (and indeed society generally) where people adopt an honest approach to everything as their default setting, and simply supply customers with a worthwhile product/service at a fair price. Why is that so complicated? It is how everything should work, and is the best way to grow a business in the long term. Companies which try to trick their customers for short term profits nearly always come unstuck in the end.
Anyway, I'm not really interested in whether shares in CPP are likely to go up or not, I just wouldn't invest in this company at any price. Their results are here, for anyone interested.
Plethora Solutions Holdings (LON:PLE) announces what seems to be a cost & revenue sharing agreement with a partner for their premature ejaculation drug development called PSD502. I cannot really gauge how significant this is, as it's outside my area of expertise. However, anyone tempted to buy the shares should look closely at the Balance Sheet, as what you'll…
