Possibly my favorite post so far was on Life Partner Holdings (LPHI), a company that looked of the charts on a variety of metrics but I avoided like the plague because of ethical and fraud questions.
Just thought I’d provide on update. Last week, the company announced they were the subject of an SEC investigation and probable civil suit, and this week they delayed filing of their annual report.
The stocks down ~35% since I wrote it up, but given how bad these charges are, I’m surprised it’s not down much, much further. The company does still have a tremendously strong balance sheet and (if they can keep operating) a business that generates great returns on capital and huge cash flows, but my bet is the business gets shut down and all of their cash goes to legal defense and settlements. Either way, a fitting end to a story so sad it was funny.
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