DMND shorts, I am planning on going long but I would like to hear your thesis. From an earnings perspective, this company may be undervalued, even after accounting for restatement. It may also be a buyout candidate, although I don't think it's going to happen soon. My biggest concern however is cash in hand and current liabilities.
What are your concerns for the company? Why do you think the company will perform worse than what most people on this board believes?
only replying as I am bored as it pushes to pin near 24/25 for opex . . .
Anyhow, can you read a balance sheet? there is no liquidity problem as WC (working capital) is strong . . . and if they only had 3MM in cash, how did they make a 60MM cash payment in september 2011?? The 3MM number they throw around is from the BS (balance sheet) as of end of fiscal year 2011 (July).
Okay, if not accounting fraud, than scandalous illigal bribes to government Chinese officials that caused the stock to drop...point is, the stock came back up!! This would have cost LVS millions in legal fees if found guilty of the charges. I'm just quickly trying to recall what happened, not do hard core research...obviously a company that is going through hard times and damage of reputation can always come back!! That's my point.
Shorts are playing on "where there is smoke, there is a fire". It's not illogical to think that there may be bigger devils than this minor accounting error found. In fact, CEO/CFO typically don't get fired for minor accounting error, so we are just hearing the tip of the iceberg possibly.
Stock investment is all about the numbers. If you can't trust the numbers, how can you put a valuation on the stock?