Another one bites the dust

1 mins. to read
Another one bites the dust

Provident Financial Group (LON:PFG) duly collapsed this morning and it is hard to see why or how it will be revived. The fact is that the climate for debt recovery has turned extremely sour. In any event, the balance sheet has been hammered and the outlook for dividends is zero in the foreseeable future. Now c. 700p.


I have never met Neil Woodford. I merely observe from afar. He is a good-looking chap and has developed a huge following this last twenty years. Therefore it is an article of faith not to wonder at what is going on. But Mr Woodford is in stock after stock out of which he cannot get. Purplebricks (LON:PURP) is clearly a prominent beneficiary of his support. What happens if he loses enthusiasm or, perhaps more relevantly, his backers elect to cash in their chips and go out? PURP will surely crash.

I here assume that PURP’s business is fundamentally flawed. Which I am sure it is. Now 412p bid.


And, finally for today (there’s tons more a-coming) there is Babcock (LON:BAB). I am told that this one is in trouble. Now 800p. Juicy or what.

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