Dick Smith Holdings Ltd (ASX: DSH) has seen its share price plunge 54% earlier this morning after announcing a writedown on its inventory of $60 million pre-tax. The company also says it is unable to re-affirm its profit guidance previously provided.
Shareholders might want to look away now.
Back in October, we warned about having all your eggs in one basket and understanding the risks you are taking on. That's something Slater & Gordon Limited (ASX: SGH) and now Dick Smith shareholders have recently found out.
Dick Smith's share price has since recovered somewhat, to be down just 47%.