Ouch. I hate it when stocks I hold lose half of their worth in one day. Thankfully, I don't own VeriFone (NYSE: PAY), but I used to own Israeli firm Lipman Electronic Engineering, back when I was at the hedge fund. It was a value play and it paid me handsomely.I don't think VeriFone would say the same thing.
You see, VeriFone bought Lipman in 2006 and announced yesterday that it believes it overstated its profit for the first three quarters of this year by $30 million. To gauge how big a gaffe this really was, $30 million is equivalent to 80% of their total profit.
Ouch.
For a quick-read on the U.S. economy, check the price of gasoline
Closing Bell: What Friday 13th curse? (ANF, BA, GENZ, DIS, PALM, PLA)
Cramer on BloggingStocks: Recognize the ludicrous pattern
