Toshiba shares are a load of old Tosh

elepantsShares in Toshiba have been falling faster than a team of free falling performing elephants which forgot to pack a key ingredient of their act.

The share price fell more than 19 percent on Thursday which was the third day of heavy losses after the Japanese outfit said it faced a potential multi-billion dollar write down.

Toshiba announced that cost overruns at a US nuclear business it bought from Chicago Bridge & Iron last year  meant it could face “several billion dollars” in charges. Basically it paid far too much for the outfit.

Ratings agencies were quick to respond.  Moody’s became even more moody and downgraded Toshiba’s rating, pushing it deeper into “junk”, or non-investment grade territory where share price is less than the value of the paper it is printed on.

Masako Kuwahara, Moody’s lead analyst for Toshiba said that while Tosh is still assessing the exact amount of the impairment loss, its financial metrics will likely deteriorate further, potentially resulting in a negative equity position.  Since Tuesday’s warning, Toshiba’s share drop has wiped about $6.5 billion off of its market value.