Why Accrol’s update stinks | 05 October 2017

Comments

  • edited October 5
    The directors of Accrol are guilty of seriously misleading investors (including myself). To state on 7th Sept that"profitability was broadly in line with market expectations" was close to being fraudulent!
  • I think an apology might be appropriate in view of James Crux promotion of this share only two months ago.
    This is an area where this mag falls down. We all make errors but it makes us human and subsequently we hope better investors. I am still waiting for some credible apologies in several stocks tipped by this Mag Restaurant group to name but one!!!
  • Scouse66 - the Accrol situation was frustrating for everyone and we're very sorry to have flagged a stock only a short time before it issued a profit warning. The 7 Sep trading update did imply everything was fine, so we based our original positive view on information that subsequently proved to be misleading. There were other factors behind the subsequent profit warning which weren't previously flagged to investors (and us).

    On the broader point of 'credible apologies' for highlighting stocks that subsequently don't do as well as hoped - we've always been honest and flagged these up. We do not try to brush these under the carpet. No one gets everything right and we make the odd bad call - but also worth pointing out that our success rate far outweighs our failures. We also make it very clear that investors should do their own research on stocks after seeing ideas in the magazine. However, I will make a point of discussing the failures more in the future.

    I also wrote an article yesterday in the magazine which discusses Accrol and why we should all pay closer attention to any negative signs in a trading update that might otherwise seem like everything is ok.