Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Quindell - The Graphic says it all - cash is very tight

By Tom Winnifrith, The Sheriff of AIM

24 January 2015 01:36

More:

Quindell (QPP) has always been a slow payer of its bills. But we already know that it survives only thanks to bank overdraft. In today's BearCast HERE, I reveal how it has raised emergency cash to keep going with hidden asset sales. The other way of postponing administration is just to delay paying suppliers. The graphic below says it all. It is paying later and later.

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Comments

john g

24 January 2015, 07:23

https://uk.finance.yahoo.com/news/quindell-plc-selling-family-jewels-123756180.html

Selling the family jewels

At first glance, it would appear as if Quindell is in discussions to offload roughly half of its business, divesting assets to unlock value and much needed cash for shareholders. However, an announcement from Slater & Gordon, released overnight gives a different view on the matter.

Slater & Gordon issued the following statement during trading on the Australian Stock Exchange:

“SGH confirms that, consistent with our previously communicated UK growth strategy, SGH has entered into exclusivity arrangements with Quindell in respect of discussions relating to a possible disposal of an operating division of the Quindell Group. These discussions remain preliminary and incomplete.”

“As part of these arrangements, SGH is completing due diligence on a portfolio of Quindell personal injury litigation case file rights to take a transfer of files over the coming months. Contrary to press speculation today, SGH has not submitted any offer or proposal beyond the file transfer transaction. The files transfer transaction is not material.”

So it looks as if Slater & Gordon is cherry picking the personal injury litigation cases it wants to take from Quindell. Moreover, there’s little in the announcement from Slater & Gordon to suggest that the Australian company is considering an offer for the whole of Quindell’s legal services division.

Desperate for cash

All in all, it looks as if Quindell is trying to offload its most attractive legal cases to try and raise some much needed cash.
Or, in other words, Quindell’s management is auctioning off the family jewels — a strategy that signals desperation. Indeed, companies that sell off their most lucrative assets are usually on their last legs and desperate to raise cash.

For this reason, it’s reasonable to assume that Quindell is in trouble and it could be time to look elsewhere for a better deal. There are plenty to be found, you just need to know where to look!
Not impressed

24 January 2015, 13:25

Tom, what the fuck are you doing? You complete cretin.
You have been clearly proven to be absolutely full of shit and completely and utterly wrong with QPP.
Give it up for fucks sake. Mugs that believe you are losing money.