United Kingdom

Authored by Giulio Meotti via The Gatestone Institute,

By Bill Blain of Mint Partners

Blain's Morning Porridge

Provident Financial. What a mess. Is it an opportunity?

UK subprime lender Provident Financial Plc crashed the most on record, its stock plunging over 73%, on what analysts called a "quadruple whammy": a profit warning forecasting a full-year loss, scrapping its dividend, a regulator probe into its Vanquis Bank unit, and the departure of CEO, the aptly named, Peter Crook. “This is without doubt a disaster,” said Shore Capital's Gary Greenwood. “Future profit performance will depend on management’s ability to rescue the situation, which is highly uncertain. We expect that further heads will roll.”

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Submitted by Charles and Louis-Vincent Gave of Gavekal Research

Carthago Est Delenda