Sep 1, 2008

Black Friday: we’ll never see another day like it for losses

Who would have thought that almost 10% of the biggest losses announced over the past two decades could happen on the one day. Stephen Mayne charts last Friday's historic action.

The last day of the profit reporting season is a bit like the annual deluge of political donations figures on February 1 each year – no media outlet ever really properly gets the enormity and detail of what is released.

Last Friday was quite historic in terms of the $5.22 billion in net losses that were announced by ten different ASX-listed vehicles which all dropped more than $100 million.

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One thought on “Black Friday: we’ll never see another day like it for losses

  1. John Parkes

    Why is Foretescue Metals luimped into this collection of losers as a Company which is expected to make a loss with he implication that it is similarly ill managed?
    Yes, Fortescue will report an operating loss this year but that is to be expected as it is a Company which has openly, and in a planned fashion, spent billions of dollars to open a mine from scratch, and has only late in the year actually entered into the selling of product phase. If returns were done for the period since mining and export actually began, and all prior expenses were ignored, the profitability of the company would show up as huge.
    On the other hand most of the companies which I assume the author really intended to criticize were ones which have been established for years, and for which operating losses were not expected but happened anyway, probably due to poor or even venal management.
    Fotescue may have dropped in share value, but so have almost all companies in the list so even that is not noteworthy in itself.
    When will the pofessional commentators stop bagging Fortescue, or if they really think something serious is wrong with that Company and/or it’s management grow some spine and stop sniping from cover and actually publish their doubts and the reasons for same for the world to see?

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