This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Selling Grips Royal Ahold After Accounting Blowup





An accounting blowup sparked a massive selloff in one of Europe's biggest retailers Monday, as Royal Ahold (AHO) lost more than half its value prior to the New York open.

Ahold is based in Amsterdam but the problem is in the U.S., where the company operates 1,600 supermarkets and is a big distributor of food to restaurants, hotels and other outlets. That's where a $500 million accounting overstatement occurred in 2001 and 2002.

The irregularities, which were uncovered by auditors Deloitte & Touche in their examination of 2002 results, resulted in the resignation Monday of Chief Executive Officer Cees van der Hoeven and Chief Financial Officer Michael Meurs. The company also warned that 2002 profits will be significantly lower than expected due to the restatements.

In the Instinet premarket session, Ahold's American depositary receipts were down $6.75, or 63%, to $3.94.

The company named supervisory board Chairman Henny de Ruiter its acting CEO. "My priority will be to stabilize the business and get to the bottom of the problems ... I am not in the least bit pessimistic about where we will be in a year from now," Ruiter said.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs