Boat builders going bankrupt

tcm

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11 Jan 2002
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Re: Nope, can\'t do that...

There's always a risk if you part with money before the goods are supplied. You can evaluate that risk using companies house, or providers of financial analysis such as Dunn and Bradstreet. Fraidf the idea that compnaies must declare the risk is unworkable.

"We'd like to announce that we've developed a better mousetrap. This has fabulous features such as x and y and z, making it clearly a better product. In tests, it caught five times as many mice as the next best product. Send £10 for you mousetrap. ......Please note, we're a new company, have mortgaged our houses to try and make this business work, which we think it should, but the fact is that we are overdrawn at the bank to the tune of £50grand, so although there should be no problem in sending you your mousetrap, the bank could technically foreclose after we've banked your cheque but BEFORE we send you your goods, just thought that you ought to know..."
 

tyger

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11 Dec 2001
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Re: Nope, can\'t do that...

But that is just what companies that want public listings have to do. In the States the SEC insists on it and there are shareholders' groups and legal sharks just waiting for the chance to sue the pants of you for non disclosure. The CFO bends over backward to think of everything that could go wrong.

Hint: perhaps consumers should only buy from companies that are about to go IPO.
 
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