The SEC is an enforcement agency with it's own rules and regulations regarding financial reporting. They are looking into a questionable number reported by OVTI. I have worked with companies in this situation before. Unless there is gross negligence or outright fraud, the SEC will do little or nothing. They are simply covering their bases with this inquiry. Any fine they might impose, which is doubtful, would be minor, and with the caveat the company doesn't admit or deny anthing. So nobody is truly affected. I do not see the SEC coming down on OVTI for anything. So, even when the SEC clears the company, it won't really matter. The masses don't expect anything to come from it anyway and I think it is already priced in.
The CC words I heard, "There will be no change in earnings numbers." The correction must be of human error. So, you said what I"m think... " already priced in"
Its the lame classaction 'lawsuit' that I still have not heard of a plaintiff? An expense that is not large until more effort needs to be directed on the subject. This is the new SO rules... at footnote... eh.
Priced in? Are you kidding me... PR announcement that states the SEC agrees with accounting of restatement will cause OVTI to rise at least $1. Count on it and I think it'll be announced sooner before later....
Good explanation, and while I agree nothing bad is likely to come of the SEC informal inquiry,INITIATED by OVTI by the way, it is important to get it checked off the list.
These matters overhang the stock price, and uncertainty does not a strong stock price make. Even Peter Leigh mentioned that "SEC investigation" is "radioactive" on Wall Street, with connotations of Enron and Worldcom. In the end, OVTI will shine, but let's nod kid ourselves that we need positive closure on this.