The whole question about accounting improprieties is troubling. It is hard to figure out how much credence to give the allegations as only 1 firm, OLP Global, is reporting a discrepancy in the accounting. That does not mean that OLP Global may have stumbled across a serious breach of trust. New Oriental responds that OLP Global's analysis is incomplete, inaccurate, and illogical. But in the post ENRON and Worldcom world these types of accusations need to be considered as a possibility. What needs to happen is that New Oriental immediately have a disinterested 3rd party accounting firm come in and analyze the books based upon these allegations. The unfortunate thing there is that may take weeks if not months to complete.
My pet peeve is anytime I have tried to contact IR I rarely get a respone(regarding normal issues or questions). I can't imagine them getting back to anyone now.
If EDU is truthful and believes these allegations are unfounded, it should not take long to get a third party involved as you mentioned, along with a heavy gunned lawfirm. The longer it takes, the more likely that EDU has done some of what Global is claiming, IMO.
IR in many companies is simply a blah,blah,blah.....I have not tried to contact the IR at EDU myself.
The unknowns will eventually kill us. Look at a number of Chinese ADR's that have dropped off a cliff due to rumors and reports of GAAP discrepancies. The SEC has stated it may in fact delist certain ADR's due to this problem. But my previous research indicated that this was a probloem in small and mid cap stocks and not a problem in the large caps such as EDU. maybe that research was a bit faulty...lol....
I have lost almost everything I made on this stock in a week of trading. I will bail if it continues to dive.
I saw last night that Put/Call ratios are low which some analysts say is a bullish signal. The Put Calls plummeted at options expiration on Friday. So are we going to see a pop or a drop? Is the situation a serious internal failing or a passing bad rumor?
Uncertain. And each investor needs to call their own bottom. Good luck.