Some people are likely just panicking and selling at whatever price they can get. Shorties are likely betting that the auditor upgrade will never happen.
Interesting pattern that the stock recently has been following. It starts up or even at the open and then relentlessly drops over the next hour or two. And then it treads water the rest of the day, at some points drifting upward. If the selling were from people in China with better information (and a 12 hour time difference vs. EST) then you'd likely see the selling, boom, right at the 9:30 open. Comments?
I have to concede that the delay in the auditor upgrade raises troubling questions. Right now it's almost as if they have no auditor at all. It may be that CVVT should provide further clarification on the whole situation.
I believe they are considering doing some sort of share buyback. Would be nice but that's not really what the market is waiting to see.
Unless the shorties have some special knowledge then I must say I'm amazed at their bravado. If the "letter of engagement" announcement were to come in the middle of a trading day and it all looked okay you would see a buying panic like there was just no tomorrow.
There has been no delay in hiring of a new auditor.
Some speculated it would be announced at earnings, but CVVT never even implied that.
They stated they expected it to be announced the end of March...while the 10K was due the middle of March.
During the C.C. they stated while they can not guarantee anything, they expected to announce a "letter of engagment" very soon.
It appears to me the company is doing everything in their power to shore up their weak accouting standards. No on complained about his until recently, so growing the company seemed to be more important. Only lately has this become a red hot issue, and the company is responding just about as fast as you can reasonable expect them too. You can't change auditors overnight.
As a side note, this is getting rather cheap. By my esitmates they'll have more than the current market cap in cash alone in about 2 years from now (never mind all their other assets and the fact they'll make north of 50M a year going forward from there).
Doesn't mean this isn't going lower, but it sure starting to look like a pretty compelling long term buy at the moment.