We have been wrong about this company in the past. In the context of a collapsing art market during the spring of 2009, we looked at Mallett’s financial performance for 2008 and predicted that this UK-listed art dealer would either go bankrupt or at least cease trading as a public company. Neither of these scenarios turned out to be true. While Mallett continues to report a negative cash position period after period, it is still listed (albeit as one of the least valuable stocks in Skate’s Art Stocks Index). It has just reported its six months financial results for 2010 and remains a going concern for now. In other words, Mallett is clearly a survivor. As we take a look at what has helped the firm to stay afloat, we will try to ascertain whether Mallet is indeed a going concern (in accounting speak).
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