VeriFone (PAY) Down Almost 60% This Week
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On Monday of this week, VeriFone Holdings (NYSE: PAY) announced they would need to restate its financial statement for the three months ended January 31, 2007, the three and six months ended April 30, 2007, and the three and nine months ended July 31, 2007.
After it performs a review, VeriFone said that it expects reductions in inventories and pre-tax income during this period.
As if VeriFone\'s stock wasn\'t already going to have a bad enough week, analysts at Credit Suisse and Merrill Lynch downgraded VeriFone from Buy to Neutral. These downgrades barely affected the stock price, however, as shares of VeriFone had already fallen 45%.
Shares of VeriFone were hit again today, sinking more than 13% to a new 52-week low at $19.57. This morning Standard & Poor\'s Ratings Services said it lowered its outlook on VeriFone from positive to negative, but affirmed its credit rating. Soon after, Moody\'s Investors Service announced it would review VeriFone\'s credit rating for a possible downgrade as a result of the restatement. Specifically, Moody\'s said the reinstatement shows "material weakness in the Company\'s disclosure and internal control over financial reporting, as well as the potential impact on its liquidity position."
VeriFone\'s credit rating is currently at "B1", considered very speculative by Moody\'s.
After it performs a review, VeriFone said that it expects reductions in inventories and pre-tax income during this period.
As if VeriFone\'s stock wasn\'t already going to have a bad enough week, analysts at Credit Suisse and Merrill Lynch downgraded VeriFone from Buy to Neutral. These downgrades barely affected the stock price, however, as shares of VeriFone had already fallen 45%.
Shares of VeriFone were hit again today, sinking more than 13% to a new 52-week low at $19.57. This morning Standard & Poor\'s Ratings Services said it lowered its outlook on VeriFone from positive to negative, but affirmed its credit rating. Soon after, Moody\'s Investors Service announced it would review VeriFone\'s credit rating for a possible downgrade as a result of the restatement. Specifically, Moody\'s said the reinstatement shows "material weakness in the Company\'s disclosure and internal control over financial reporting, as well as the potential impact on its liquidity position."
VeriFone\'s credit rating is currently at "B1", considered very speculative by Moody\'s.
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