The warning signs were always there for people to see: > > Weak...

The warning signs were always there for people to see:

> > Weak management - do not have integrity to admit that they have no chance of meeting 2nd half results nor future years following UK issues. The fact management didn't even mention this previously of possible future changes in the industry shows they are weak and expect things to always be rosy and well.
> Manipulator of its accounts (ie. revenue recognition, balance sheet, etc)
> Very weak cash flow against high debt
> History of bolt on acquisitions and always high growth
> Poor acquisition of Quindell from the start, buying a company bigger than you
> Poor market analysis of the UK industry - fair play to the sellers of Quindell, I bet they knew all along about the UK changes coming.
> First public offering of a legal firm and over stretching themselves.

With goodwill write down to come the balance sheet will be destroyed and covenants triggered. Possible take-over target, maybe, but really don't see how it will get out of this one without external support (capital raise, buyout, white knight, etc). No sympathy for people that bought in if they hadn't done their homework; too many people trying to be traders and make a quick buck or thinking, oh it looks cheap now in comparison so I will buy and expect it to go up! - the same story is happening to BHP somewhat, but I'll leave that for now other you wouldn't want to touch as there is no way they can sustain their dividends (weak management again).