Does anyone know how to get M/S to confirm the cash positions in the 1st quarter numbers. That would deal with the question of the cash being "real" and if so the stock price would adjust to a more reasonable level.
An additional thought, one reason I have money in this company is that if this is a fraud, the auditors carry enought insurance to cover all of the investor losses. This isn't like Enron which was so big the insurance couldn't cover all the losses.
auditors do limited procedures on cash at the quarters, one of which is to compare the bank statements to the cash value on the books. It's not as extensive as the formal audit procedures at year end (e.g. no confirmations), but yes, they do inspect the cash balances to what the bank is showing
to follow on that - I can guarantee the auditors won't be publicly telling investors any details of their procedures or explicitly saying that cash is good, but you can be sure before the company files their 10-Q that the auditors' quarterly review was completed and that the cash was covered
Thanks for the comments on M/S's quarterly review of cash. As respects insurance they do carry insurance for their legal liability resulting from their negligence. That would cover my losses if this is a fraud. I worked in the insurance business for 40 years covering legal liability losses so I understand the coverage.