profit warning

Can it get much worse?

LG “wishes to issue a profit warning regarding the financial results of the Group for the third quarter ended 31 December 2011. The Group will suffer substantial increased losses from the second quarter ended 30 September 2011.”

And one of the main reasons for their losses is … “fees and expenses incurred by the Company in the arbitration proceedings with The Chinese Society for Environmental Sciences and the Company’s proposed acquisition of all the issued shares of Signature Metals Limited.”

Financial results are due Feb 14th but “In the meantime, the Board advises Shareholders to exercise caution when dealing in the shares of the Company. If in doubt, Shareholders should consult their professional advisers.”


So SBL directors where do we stand now?

Also why is a profit warning when the group is suffering substantial increased losses from the previous period?