Well, Vegas was right according to the CFO's comments they do seem to have accounting issues or Wall St thinks they do. This has also turned into a triple bottom breakdown for the chartist's, I'm not one. 3.5 is the next support level, it's at the bottom of the site. http://stockcharts.com/gallery/?pact
They really want to test 5, maybe just to trigger margin calls.
Onehand said <<I am eager to hear the new CFO speak and see what kind of confidence he brings back to PACT>>
Here is what the new CFO said at the Roth Capital conference...
Joseph Levinson, the newly appointed CFO of PacificNet, also presented for the first time since his appointment. Levinson discussed his goals for the Company, "I expect to develop this team into a model of how to do US GAAP in a Chinese-based company. Even before I joined, the Company had taken major steps to take our financial control and processes to the next level. We now have a sophisticated automated accounting system and specialized teams to deal with issues such as Sarbanes-Oxley and with regulatory requirements. With my coming on board, the Company is showing, even more, its long-term commitment to the success of the all-important financial and reporting function."
I think the point is: After previous earnings announcements the stock ran and then fizzled because of other reasons(delays on reporting being a pretty important one). Those other reasons should no longer be a cause for concern so when Pact delivers strong results investors will not have to worry about them blowing it on other issues(filing a clean and accurate Q on time, etc). New CFO and all the new accounting procedures and processes that have been put in place have put an end to that dilemna. I am eager to hear the new CFO speak and see what kind of confidence he brings back to PACT. Pact sold off before because everytime the stock popped people frankly people did not trust it and wanted to lock in gains as soon as poosible or got nervous and angry(delayed reporting one quarter was a huge issue) and sold out because of that nervousness. As for Macau, the deal is set up to be very accretive for PACT and I think Able is penalized if they do not meet the profitabilty goals set forth in the agreement so I am doubting increased costs will be a huge factor here. I expect much more people will be listing to the next conference call. Lots of interesting things going on and they really seem to be getting their act together.
You don't seem to read very well or at least don't comprehend very well.
I'm not a doubter, not a pumper, not a short, not a basher. I'm also not in love with PACT.
I'm a realist and a trader. "Non-believer" is not in my vocab because I'm not here to believe.
I've said all along that PACT has to satisfy 3 criteria to get out of this range. The only one left is quantifying the expenses relating to Beijing and Macau.
In the over 2 years that I have been trading this stock, WE HAVE ALWAYS FIZZLED AFTER A PR! It's pop and drop. That will continue. Obviously the street did not trust previous ER and therefore didn't really consider them "blowout". You might have, Tony might have said they were, but the street just didn't give any credibility to them. Thats why we hit 4.95.
The market will like the new CFOs attitude. Thats why we should begin to move up toward 6 and soon I believe.
Mega you're wrong. It won't test 5 again (IMO) and it has nothing to do with charting.
WALL STREET thought PACT had financial accounting problems and thats why we were down. I've been saying that for 3 months.
NOW, the new CFO comes out and draws a line in the sand and says they have the tools in place to prevent future problems. The street will give him the benefit of the doubt (for now) and make him prove his public statements.