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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks

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To: Elroy who wrote (230)9/9/1999 9:36:00 PM
From: John Stichnoth  Read Replies (1) of 1931
 
Elroy, I haven't looked at CDEN, but thought you might like some personal experience: When the CFO of a company resigns following an admitted problem with software, that suggests there may be a problem with the numbers they have been reporting. The resignation/software problem combination is frequently a precursor to restating previously reported numbers--sometimes drastically.

There is a strong element of risk here that is pure uncertainty. The company may not know how the numbers will be affected, let alone investors being able to make reasonable estimates.

(Been burned in similar situations).

Best Regards,
JS
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