I am following the sinking of the Orpea company with attention because it is a textbook case that we have before our eyes.
A society raised to the skies and to the pinnacle. A company that feared nothing and no one, in such a captive and promising market, that of the “silver economy” as we say between insiders to talk about the market for old people and grandmas. It’s prettier Silver Economy which designates gray and silver hair than talking about old people, it’s more “bankable”. Except, except… when a few journalists poke their noses into the small business of this sector to reveal lamentable and in no way tolerable practices, but which have been known to everyone for a very long time.
The diapers were counted like rationed crackers for each boarder.
Despite this terrible management, Orpea is a colossus with feet of clay, strangled by a monumental debt of 9.55 billion!
Yes 10 billion and all with rising rates.
While the company announced its very heavy restructuring plan last week, the stock continued to plunge and fell below 7 euros to 6.73€, down almost 10% again today.
I told you a few weeks ago that the finish line was below 5 euros to 4.85 € per share.
We’re going straight there.
In this business of collapse of a very good value, we must see there as always, the ravages of the greed of leaders ready for anything and forgetting that they had a job and that it is in s taking care of the elders that they could earn money.
You have to see for savers, always the imperative need to diversify the actions you hold, because even a group that seems solid can collapse much more quickly than one might think.
You also have to see the need for management rules, and you have to know how to cut a line automatically. As soon as I notice a loss of 5%, for example, I sell. You can put 10 or 15% whatever, but have a management rule.
Finally, you also see capitalist morality there, that is to say that the shareholders are also ruined when the company has not been able to live up to its trade.
It is therefore crackers for all, and finally the fact that after the pensioners, the shareholders are put on a dry diet is completely moral and virtuous.
Capitalism works when you let it work and the state does not privatize the gains and socialize the losses.
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