Here's the good news. Please convince me that the company is doomed.
Let's talk about what we know for a few minutes:
- Whether they actually filed the 10Q or an extension, they did something because the stock is still listed.
- They are starting beta testing and are attending a conference in a month which says they are definitely not going bankrupt.
- They willingly contacted the SEC which tells me that they are cooperating and don't believe they have anything to hide.
- They have a universally praised new product with amazing IP and decent margin.
- The CEO believes they are back on track and has shown his skill by trimming the fat in the company, both workforce and low margin products and by releasing info at the most opportune times. (Pre-Thanksgiving)
So why are you shorting this stock? I am genuinely curious. Given the forward looking attitude of this company, I'm not even sure if the pps will tank again if the 10Q is horrible. I think it's genuinely priced in.
Zach, your first point is incorrect. I'm not advocating shorting this stock. I certainly wouldn't. But to say they did something is not necessarily true. It's unknown. The delisting process is not immediate. If they did nothing they will still trade under their ticker until they receive the next out of compliance letter and then they must appeal that letter. I would encourage people to look up previous instances of companies facing similar situations in the past.
Perhaps, but do you really think they would just *not* file the paperwork to extend the deadline? Who would that benefit? What possible purpose would it serve? At some point, we have to use some common sense and this is one of those cases.
all i know is soon we will see a 8-K listing what happened with that letter. then you also have next 10-Q is due in approx 3 weeks. if they miss that one they be in default of two and this will get them on fast tract for a form 25.
the contacting SEC is my fav if there was nothing going on SEC wouldn't of been looking at them. you don't just contact them if nothing is wrong because they wouldn't be looking.
bottom line is this company has to many problems to go long, if you are trying to make bucks off the pops or drops you be rewarded more then just buy and hold. however you can end up even holding a bag that way.
best advice i give is buy options for a less exposure but still will make loot if it tanks or skyrockets.
I agree with you pipster. This company is what the Street called "a dog with flees." The reporting of the 10Q does not guarantee the stock to go up at all, it could crash the stock below $1 and casue all kinds of problems for the company, it's basically a day trader's stock, a very dangerous one at that.
What's strange to me is how many of you shorts seem to think Schmitt is just going to *not* file the correct paperwork. Like he's going to forget or something. Do you really think a person gets to be CEO of a company by being stupid? I'm genuinely curious here.
And as far as the SEC, if you're being sued by everybody and you have nothing to hide, you call the SEC and ask them to investigate. That comes back clean and the lawsuits have nothing on which to proceed. Very smart business move.
I don't know, Pip. You have such an incredible hatred for this company. It's to the point where you can't see anything positive and it makes everything you say worthless. Either you are a paid basher or you were hurt very badly by a bad OCZ trade.