BWX's shares have been in a trading halt since August, and now they're delaying the release of their financial accounts again.
👉 Background: BWX is an Australian natural beauty retailer. Their brands include Sukin and Mineral Fusion as well as being the majority owner of Zoe Foster Blake’s Go-To business.
👉 What happened: BWX’s shares have been in a trading halt since August 29 (ie their shares can't be bought or sold during this period). This was the first time they delayed their financial results…And now, BWX has just announced that they’re delaying the release of their financial accounts…AGAIN.
👉 What else: Supposedly they’re waiting to see if they can score some debt funding to keep the biz going. But worst of all, its CFO has stepped down and the company has admitted to something called channel stuffing.
💡Channel-stuffing is a way of inflating a company's revenues immediately prior to the end of reporting period. It makes it appear as though the company's financial performance is healthier than it actually is.
💡It's kinda like shredding for a wedding to look good for that moment. Or cramming for an exam to retain the info for a single day.
💡In BWX’s case, they were selling more products to their distributors than the distributors could readily sell to consumers in that period. So it’ll be interesting to see what happens to BWX’s share price once it comes out of its long, long trading halt.
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