I don't think they overstated earnings. I'm expecting about $.85 - $1.00 per share for '98. If Newcom/Aura falsify earnings, this early after their IPO, then they would lose credibility for a long time. Keep in mind that Aura owns 70%. If the stock drops, then they would stand to lose the most. I think the company will file a 15 day extension with the SEC. Newcom shared earnings with Aura from March 1,1997 - September 15, 1997. If Aura is late, then Newcom will also be late. I think this is out of Newcom's control, and is typical for a spin-off. I still believe the longs (not shorts) will have the last laughs. Any comments.
Aura historically is late with their filings (look at last 2 years of SEC filings). Like I've said before, the sooner Newcom distance themselves from Aura, the better. Aura isn't a real company, if they were, they'd act like one. That's what the shorts see, and that's what they expect from Newcom. Only time will tell.
Mahin/CF - Any thoughts. |
