Goodness! An astute gentleman named Jonah Meer has been here before me!
" -- In February of this year( 2007 ), Magellan Petroleum agreed to settle its tax dispute with the Australian tax authorities relating to an audit that found that a subsidiary of Magellan Petroleum had claimed certain tax deductions that it was not entitled to. That settlement resulted in a payment to the Australian tax authorities of (Aus) $14.6 million (U.S. $13.1 million) and, consequently, caused the company to report a loss in its Quarterly Report for the three months ended March 31, 2008. Rather than take responsibility and hold someone in management accountable for taking these now disallowed deductions, the company attributes the tax dispute to aggressive actions taken by the Australian tax authorities and attempts to 'sell the settlement' as necessary to avoid 'a protracted and costly legal battle' with the Australian tax authorities.
-- Earlier this month, Magellan Petroleum publicly announced that shareholders can no longer rely on the financial information in the company's three most recent quarterly financial reports filed with the SEC due to certain miscalculations that caused certain expenses to be understated." --------------------------
One wonders if all this will affect Magellan's ability to raise capital or get requisite approvals from the Australian Government for new projects?
fishdead. Short term movements in a stock like this are not meaningful unless you are a daytrader. Are you interested in technical analysis? Again doesn't mean much when dealing with penny stocks but some might argue the stock is making a double top.