Guys... Guys! Let's examine facts. Guy gets fired and goest to auditor and SEC. With very specific inventory overstatements of 250 tonnes. He risks being sued or maybe arrested for falsly claiming these items. Stock losses were over $1B dollars.
And response from CFO: Asked whether there's any truth to those allegations, Lai said, "We don't believe so." He said the company will issue a statement later Wednesday on the matter.
This is very concerning. He knows what his inventory levels are and when he says he "doesn't believe so"... It makes you very concerned. If there was no truth to allegations he should have said: Of course the inventory is there. This guy is lying because we fired him..He's retaliating by making false allegations and we will pursue him!
Let's face it. The controller would not have taken that kind of risk unless his facts were correct.
They are missing 250 tonnes of poly.. out of 1000 tonnes.
25% overstatement of inventories.....Not good!
Next step from company will be a full investigation...Though I'm sure they already know the answer and delays of statements...with final statements corrected for overstatement of inventory.
Logical leap from smoke to fire is not always true.
A real CFO would not jump in and start speaking on all points without LDK legal counsel.
He provided the facts about the controller, who he reported to, and why he was dismissed. Without reviewing the allegations and investigating their legitimacy, he cannot say they are completely false.
HOWEVER, if the company releases a formal statement saying that the financial controls are solid and that inventory is not affected, this stock will move to the mid $60's. People should not forget that there was a China correction today with a bunch of profit taking so even without this news, the stock would have probably closed the day at $64.
I am concern that it is China....if the guy is lying, it is a death sentence or close to it ain't it? If he is telling the truth, with Chinese stocks tanking---its a death sentence isn't it?
I am concerned about the guy----especially since no one wants to give his name.
maybe.. or maybe this guy is a disgruntled ex employee who is trying to enact revenge or drive the stock price down so he or others can buy in at a lower price.. csun had some questions raised about their numbers but it has bounced back very strong
You know it's true. It was too specific and he took drastic action...Come on. You don't walk into the SEC and LIE! Unless you really want trouble and 10 in Leavenworth!
Come on. He is the controller and he probably furnished them with the data.
Lack of CFO denial is a TELL!
This is going to be very painful!