We have commenced an investigation into the recent announcement by Seitel concerning the restatement of its financial results and the repayment of bonuses by the CEO and CFO. If you have any information or insights pertaining to these recent adverse disclosures please email me at firstname.lastname@example.org. All information shared will be stricly confidential.
Oh No, CALL YOUR LAWYERS!!!
EMC down $0.62 today froma 52 week high of $45.
Everyone must sue them. The stock price went down. Call your lawyers. If your stock goes down in price, you can sue the company. Framebane says you can. Never lose money again. Framebane says you won't just by simply sueing the company whenever the stock price drops.
Framebane says you can do this. Every one sue.
It has to do with fraud and misrepresenting earnings for two years. Those investors who were buying the stock based on PE ratios believed the earnings were real. Numerous PRs hyped record sales and earnings. Over and over again Frame went on record claiming the stock was under valued, and the whole time he and virtually every other officer in the company were dumping stock. Around $20 million worth. The company was required by law to apply SAB 101 to their accounting practices. It was not optional. It was not sector specific. It was not negotiable. Frame & Co decided they could dump more stock and use their bogus reports to embezzle cash by refusing to obey the regulation. Frame told investors to buy stock in his money loosing, cash burning company based on fraudulent reporting of revenue. Those investors who bought at $23 because they thought the company was trading at 15 times earnings got burned because Frame lied and misled them about the true financial condition of the company. If those investors had known the company was reporting losses, they sure wouldn't have paid higher prices for the stock or bid it up to those levels in the first place. In fact most investors would have avoided the company completely as anything other than a very high risk penny stock.
While we're at it, the most recent earnings release totally misrepresented what actually happened. The company's auditor refused to sign off on the bogus unaudited reports filed all year long and Frame acted like he was doing everyone a favor by restating the results so they complied with GAAP. Not only that, but the PR and 10K states the company plans to report earnings prior to the restated years as revenue in the future. Maybe I'm missing something, but I don't see how they can get away with reporting revenue already reported a second time without restating those years the earnings supposedly came from. $36 million worth according to the PR and 10K. The PR made it sound like the company is going to have an extra $97 million coming in when the fact is under perfect conditions maybe 15% of that number might result in actual sales where the company is able to collect cash on the transactions.
Not only has Seitel misrepresented the company's true financial condition for the past 2 years, they continue to mislead investors as to the company's current financial condition.
The thing you don't seem to understand is that MSFT doesn't have to restate their earnings for the past 2 years because they committed securities fraud. Any investors who have lost money on MSFT did so without being misled or cheated. Until Microsoft restates their earnings to reflect losses for the last two years, you're going to look pretty foolish by using that as an example. I'm not a big Microsoft fan, but at least when Microsoft reports earnings, the cash per share goes up, not the debt to equity.
Here is a good long term stock (2-3years) that I do understand: SCIO $30 . If you buy into SCIO now and it goes down don't fret just hold or average in. If SCIO keeps beating expectations for sales of their recently FDA approved drug for chronic heart failure "Natrecor". The stock will easily double triple or more over that time period.
I am long but I think SEI is very risky short and medium term if long or short and whether you average in or not. I have a very small position and I like you don't understand the fundamentals of this business enough to risk a larger one. I would suggest you take the same approach as me. If you invest in something you don't totally understand then invest with funds you can afford to lose.
Maybe someone else on this board can give you an honest evaluation of the long term company fundamentals.
Probably a bunch of momentum traders from a couple days ago unloading right now with shorts going along for the ride. If you want to take a position I would suggest averaging in. I don't think anyone can predict the near term or medium term shareprice movement right now. Most traders are just going with the flow.