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Microcap & Penny Stocks : Eutro ( EUTO ) -- Ignore unavailable to you. Want to Upgrade?

To: Emec who wrote (1714)	11/23/1997 12:50:00 AM
From: Whitetigr	Read Replies (3) \| Respond to of 12043

With all due respect don't put too much faith in independent auditors reports when you are researching companies. If you read the report and the normal mumbo jumbo included the auditor takes no responsibility for any wrong, misleading or fradulent information given to him/her from the company. There is information that they need to include in their reports and unless they go in and put in place their own accounting system for everything the company has they have to rely on info reported by the company. Perfect case in point that I know about is a corp that was called Southmark Corporation. When things started coming out there were suits against the parties involved because the info released was not even close to representing fairly the financial condition of the company. I am sure there are many other examples out there. On nonreporting companies you won't likely find this info anyway. Just as fair warning in doing DD in companies look more at what else you can find representing if the company has been honest in what it has reported, is hyping something for no reason or is issuing statements with nothing to back up what they are stating. The independent auditors report is always nice but be forewarned it will not tell you everything even when it is available. End of the public service message :)