I've been trying to evaluate this release, and come up with a few points.
On the negative side, the loss of 3.3 million is disparaging for a company that has had problems with cash-flows. I think, at the least, this means we will see more shares issued and value dilution. Also, the comment about lack of improprieties seems to indicate that there might be some worry about a shareholder law-suit. Such a law-suit always seems a posibility when a company reports accounting errors with a subsequent price drop. Given the cash-flow problems, Fiberchem obviously does not want to pay a bunch of lawyers at this time.
On the positive side, it seems that at least some of the earnings are only delayed and will be posted in future quarters. Also, Fiberchem still maintains its superior technology and doesn't seem to be near bankruptcy. So, if can it can stay around its products still have the chance of getting accepted in a big way.
All in all, I am becomming increasingly of the opinin that the best outcome might be for them to get taken over by a company with a better capital base to exploit the technology. Hopefully, some of the larger environmental, monitoring, or instrument companies feel the same way. |
