Vodafone
Vodafone is suddenly in trouble. There have been stories on the television and radio over the last 24 hours announcing that there is a problem with the company. Just listening to a report on BBC Radio 4 relating to Vodafone's dirty linen being washed in public.Did I say suddenly? I've been advising people that Vodafone is a problem since I wrote my ratio analysis resources for www.bized.ac.uk ... three or four years ago!
I had the same experience when I started reporting on www.amazon.com: I couldn't believe it when amazon was reporting a NEGATIVE balance sheet of $5 BILLION and falling and still there were analysts and brokers recommending amazon as a BUY. Out of the blue ONE analyst on Wall Street suddenly announced that amazon was a problem and suddenly all other analysts woke up and looked at the dawn.
The outcome of all of this is that some companies can get away with massively understated results for a long time.
The chairman of Vodafone is suddenly under fire; but his preecessors are equally culpable as the rot set in well before today. See how it all unfurls now.
You'd be well advised to read my report on Marks and Spencer too: things are getting better there but senior managers are taking disproportionate bonuses. Let's see how long that story takes to become a sudden problem.
Duncan Williamson
posted by Duncan Williamson @ 5:24 AM
1 Comments:
The sentence that I some companies can not get away with massively understated result for a long time is from my point of view not completely true. I think that management makes plans based on the information they have. I think they are knowing that the information is not good. However they have to think positive (for them self and their employees) because otherwise they are not able to save the company. Negative publicity will influence the growth of a company.
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