Olympus stock dropped 34% today


Olympus stock keeps falling down. The company is urged to purge even more executives. The former CEO Woodford said “The board all has to go”.

I would not be surprised if this is the beginning of the end for Olympus. Maybe somebody will just buy the company before we start seeing the first "bankruptcy" headlines.

"This is very serious. Olympus admitted it has made false entries to cover its losses for 20 years. All people involved in this over 20 years would be responsible. There is a serious danger that Olympus shares will be delisted. The future of the company is extremely dark." (ITC Investment Partners via BBC)

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  • DIX

    Can someone outline what caused this? I haven’t been keeping up

    • Stepper

      I’ve been keeping up and I still don’t get it.

      From what I (casually) gather, Olympus misplaced something like $650 million dollars while dealing some sort of “under the table” transaction with some dudes in Madagascar. So the Japanese guys tried to blame it on the white dude but the white dude was all like “hell no,… I’m telling on you”! So now that the white dude told the police about the sketchy Japanese guys the jig is pretty much up. As it turns out, Olympus has been sketchy for the last two decades and the only way to clean out their dirty is to chop out upper management. But then again, how do you run a company without upper management. So now Olympus is screwed.

      • JG10

        Stepper, your post cracked me up. Thanks! LOL!

      • TaoTeJared

        That is great! And not to far from the truth either.

    • http://photorumors.com PR admin

      check those posts for more details:

      http://photorumors.com/tag/olympus-scandal/

    • Anonymus Maximus

      Just think Enron.
      One difference is, that even with lying about their losses AND hiding them since 20 years tehy had a massive loss two years ago and very small profit since.
      So the truth might be brutal.

      • Bob

        I was racking my brain thinking of a recent analogous business scandal – Enron – you nailed it. Basically the same thing – cooking the books to hide losses and hold up the stock price. Wonder if their CFO ever signed a SOX statement? If so, then it can be a criminal case in the US.

        • Vince

          Hard to say – Olympus is traded on “pink sheets” which means it isn’t subject to quite so stringent guidelines. The stock is trading as of 3:30est at less than $7.50 down from around $32.00 just a few weeks ago. I’d guess the won’t end well. I’m betting there will either be a quick and dirty asset buyout or it’ll shut down completely very soon.

  • regular
  • Tony

    It was all good until you hired an American…

    • http://photorumors.com PR admin

      the former CEO was from the UK

    • Pamela

      He is British, not American

  • Ed

    I hope international Japanese companies get the message. ‘Face-saving’ measures like this don’t work outside of Japan, and have probably screwed the company. This is a cultural problem, and is not restricted to Olympus, or indeed the business sphere.

  • Vlad

    This sucks, why didn’t this happen to Ricoh or some other useless camera company! :(

    • lolly

      It’s better in the long run for Olympus and m4/3 owners. Panasonic will take the lead … they have the resources for R&D and marketing, just like Sony.

      • http://photorumors.com PR admin

        I think this will happen, Panasonic has the better cameras anyway (personal opinion).

      • Markwhat?

        Please, no marketing. Eyes , nose, a** and ears full, wallet & brain empty with marketing!!! Please keep your marketing !!!!

      • http://www.flickr.com/genotypewriter genotypewriter

        Panasonic doesn’t need Olympus but I wonder if they’ll just stand and watch as their biggest FT buddy goes down.

        The other downside is the format. Anyone buying Olympus should also be interested in FT… and there aren’t many.

        The worst thing that could happen right now is Fuji or Canon buying Olympus… that’ll be the end of our chances of seeing interesting mirrorless cameras.

  • Bart B

    RIP Oly …

  • Vlad

    I bet Olympus will be sold for peanuts, I wish I had the money to buy it!

  • http://brianhirschfeldphotography.com Brian Hirschfeld

    Hindsight being 20/20 and all I totally should’ve shorted this a couple of weeks ago….damn….lost opportunity…

  • http://photoartbymark.zenfolio.com photoartbymark

    i like the word “misplaced”

  • http://photoartbymark.zenfolio.com photoartbymark

    time for seppuku itchi ban san sayonara

  • http://photoartbymark.zenfolio.com photoartbymark

    THE END.

  • broxibear

    Things go from bad, to worse to oh sh*t for Olympus…
    “Japanese Police Launch Official Investigation Into Olympus.
    Japanese police will exchange information gathered during the investigation with overseas law enforcement agencies, such as the U.S. Federal Bureau of Investigation, which is also pursuing an investigation into Olympus.”
    http://www.foxbusiness.com/industries/2011/11/09/japanese-police-launch-official-investigation-into-olympus-report/

  • JG10

    So will we start to see some firesale prices on Olympus cameras? What about the lenses?

  • Steve

    They might have to suspend share trading but it’s premature to mention going bankrupt; they might need an investor/government aid to carry on though. With cooked books, you can’t know. Wait for the audit.

  • http://photoartbymark.zenfolio.com photoartbymark

    another 15.6% today soon junk status, bankruptcy, or someone may buy it at a discount before its too late

  • EW

    The biggest concern would not be a buyout by a legitimate camera company, but by a Chinese camera company who just wanted the name to sell cheap junk.

    Olympus has been going down hill for years, the losses may have been hidden, but their failure to be competitive from the past 10-12 years has been obvious.

    I hope that a real camera company steps in and keeps them going, but it seems that any bidders will likely just be buying the name and the facilities.

  • Occupy Olympus

    Welcome guys!
    Join the occupy movement!

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