Y'know Bob.. I want to like EMKR.. I really do..
But management has gotten themselves involved with some folks (on the solar side) who don't have an established operating history, and apparently an even more obfuscated financial worthiness.
And as Mr. Left correctly points out (painful as it might be to admit), you just can't hide a solar project. It's a big-ticket project, requiring a lot of prior planning, permitting, and government and financial paper trails.
So either EMKR's management is taking their clients at their word, in which case they could assert they were misled, or they've done due diligence verifying source of funding and permitting requirements. But they will have to prove this to the SEC, should they respond to Mr. Left's assertions and findings by his hired PI that ES Systems doesn't exist as they advertise (with an actual physical footprint with employees, factory space.. etc).
Now.. even though we might assert that just the optical subsidiary alone justifies the current stock price, it will mean nothing to the SEC should they launch an informal (or god forbid.. a formal) inquiry. That's what the shorts are hoping to achieve.. an SEC trading halt that just destroys the market for this company's stock.
And from what I can see, EMKR's management, by their indifference towards dispelling this lingering controversy, and making the declaration that they've verified their client's ability to finance and complete their project, is assisting the shorts in bringing the SEC into this.
When Mr. Left presents his investigator's report to some SEC lawyer, as we all know he will, it's going to be difficult for them to ignore it.
Hawk |
