Slater & Gordon Limited (ASX: SGH) makes a statement in relation to Quindell plc
On Thursday, Slater & Gordon released a statement designed to reassure investors after an investigation was launched into the accounting practices of Quindell plc. Slater & Gordon recently acquired a major part of the Quindell business and is confident that it has no liability in relation to the investigations which relate to 2013 and 2014 historical statements. The market did not react well to the news and the stock has fallen by almost 20% over the past week.
IOOF Holdings Limited (ASX: IFL) responds to Fairfax Media Limited articles
On Monday, IOOF Holdings defended its client satisfaction track record and denied that it considers its services to be uncompetitive. It also stated that a reported unit pricing error related to an external fund manager and was not an IOOF error. IOOF chose not to comment on other allegations which may include insider trading, cheating and front-running. Unsurprisingly, the stock is trading around 13% lower since the story broke.
Flight Centre Travel Group Ltd (ASX: FLT) provides a market update
On Tuesday, Flight Centre announced that profit before tax would be at the low end of the company's targeted range of $360 million to $390 million this year. The stock is trading around 20% lower since the announcement, which on the surface appears to be only a modest earnings downgrade. Is the news an indication that Flight Centre is finally succumbing to the threat of online competition, or is recent price weakness a buying opportunity?
Collins Foods Ltd (ASX: CKF) announces financial results to 3 May 2015
On Thursday, Collins Foods reported a loss for the financial year of $10.4 million. However, revenues rose by 29.7% to $571.6 million and the result included an impairment charge of $27.1 million relating to the Sizzler business. It is easy to dismiss impairment charges as non-cash items, but this ignores the fact they represent the overpayment for an asset in the past. The market doesn't appear to hold this view since the stock climbed higher on the news.
Stories from the smaller end of the market
My Net Fone Limited (ASX: MNF) and AMA Group Ltd (ASX: AMA) took advantage of their high share prices to announce they are raising capital. Both companies have been strong market performers in recent times, but are they treating all shareholders equally?
On Wednesday, Programmed Maintenance Services Limited (ASX: PRG) announced plans to acquire Skilled Group Ltd. (ASX: SKE). Consideration for the deal is 25 cents cash and 0.55 Programmed shares for each Skilled share, equivalent to about $1.79 per Skilled share. The combined entity will be a market-leading staffing, maintenance and facility management business.
