DRGI:
From the July 28 PR:
"The company uses the McGladrey network, the world's 6th largest accounting firm."
After putting out that the company has a EPS at 17cents without disclosing: the extraordinary gain properly, the companies actual revenue has fallen from 1.67 million (97) to 17k (98), the company is now using an accrual method of accounting, and to top it of claims of using the auditing services of a top 6 firm which it never used (it actually used Jones, Jensen & Company), how does this not affect the companies credibility? I am not saying that the company is trying to make strides to regain themselves with recent acquisitions, but to mislead shareholders who are buying the stock based on the 17 cent EPS and then let them know what the EPS was actually based on (a one shot deal) two days later close to the bell on Friday IMO is a real shot to shareholders who have bought based on the EPS from their July 28 PR. They even reinforced this by stating that they used the world's sixth largest accounting firm. How about the guy who bought the stock at 38 cents based on a valuation of what the stock price should be? At 17 cents EPS and 30 million outstanding the stock should be worth over $2. Even at 100 million shares outstanding the stock should have been worth over 60 cents.
Oh, and guess what - two days later - "sorry we goofed, let us clarify, we should have let you know the 17 cent EPS is only a one time shot - and also, we didn't use one of the top six auditing firms, we used Jones, Jensen & Company - a firm which you probably never heard of - sorry for the mess up!"
Give me a break, this company has lost all credibility with me. I don't care what it does in the future.
And if you think that I am just pissed off about loosing money on this, you are wrong. I had it for three weeks before the 28th PR came out, sold it on the news, and never looked back. I said to myself, how could a company produce that type of money, have filed for Chapt 11, and have nobody have any clue about it.
|
