Has the company actually violated any laws that the SEC would be involved in or are they just being labeled liars by some people on the board and there would be no legal ramifications? Not sure whether to sell or hold. Thanks for any helpful info for a novice investor.
It's not clear what they've violated. If the documents are real, and the obligations are as Mao estimated, that takes about 30% off the baseline earnings #. Thus a 15-17 target given maintaining the same multiple it held previously makes sense.
If they haven't violated anything, the price recovers.
meechairman: When was the CEO aware of those "unauthorized documents?" On Dec 3rd, he claimed he was unaware of them. On Dec 10th, he said he was aware of them since August. Which one is it? Did he lie on the 3rd or on the 10th. Your pick!
gatorgal50: The company made false disclosures to investors. On Dec 3rd they claimed they didn't know where OLP might have gotten their "allegations." On the 10th, they admitted they have been aware of these "unauthorized documents" since August.
You should consult with a lawyer to determine whether that might have been a violation of any laws. You should also consult with an investment advisor regarding whether to sell or hold.