Commenting, analyst Praneeth Satish said, "We do not believe the LNCO structure, in and of itself, is under scrutiny. Accordingly, we anticipate LINE to largely return to its growth via acquisition strategy once the informal SEC inquiry and Berry Petroleum(NYSE: BRY) merger are behind the company. Notwithstanding, we recognize that trading volatility could increase during the informal SEC inquiry. Additionally, we anticipate investors may begin to discount the possibility that the BRY merger does not go through given that the SEC inquiry could take anywhere from one to four months to complete, in our view
This dead money for the next 3 to 4 months. I see $20 comming before any up swing.
A reasonably intelligent accountant, should be able to determine is there is an accounting issue with 45 minutes. It would take a team of 4 more like a week to audit the actual accounts that hold all cash and derivatives.
This is really not about the accounting, there are in fact no rules for non GAAP accounting...it is merely a suggestion by management on how to view its results. Almost every company, especially those that rely on cash flow, make similar suggestions.
The Fort Worth SEC office is treating this like a fraud case and that is why this has gotten slaughtered. Someone should go to jail on this one, be it from LINE or the Barron's accomplice or the Fort Worth SEC office remains to be seen.
1. no such thing as "informal" inquiry. That's CEO speak for, "this could sink us, but let's put on a good face" or else I'll be replaced tomorrow morning by someone ten thousand times more capable:.
2. SEC investigations take 1-3 years, they NEVER take 3-4 months. Google and prove me wrong.
About a dozen years ago when short-term trading was the rage and short sellers abounded, I owned two companies that were subject to *formal* SEC investigations. They were announced by the SEC. (Linn, however, had the option to keep mum or make it public.)
The two companies I owned shares in elude me now (one, though, distributed diabetic supplies to residences, primarily in Florida, and charged Medicare), but they were accused of all manner of accounting misbehavior and the PPS of both stocks significantly tanked. The SEC investigations took 3 or 4 months, as they were intensive. The upshot is that both companies were completely exonerated and the stock prices rapidly recovered.
I'd suggest some prudence about conspiracy theories regarding the SEC or even the degree of seriousness implied by the current inquiries. Still, reason isn't about to ameliorate panicky behavior or evidence-challenged conjecture asserted as fact.
You obviously don't know what you are talking about. I practiced law in this area for almost 40 years.
There are informal investigations by the SEC and I have seen some of them be resolved within several weeks.
ok... I did. Full investigations do typically take multiple years, however there is such a thing as an informal inquiry or investigation, as described on the SEC website. How about doing SOME research before spouting your now proven ignorance to the entire process.
The stages of a typical SEC investigation are represented as a flowchart below. The first stage of an SEC action is typically an informal investigation. At this stage, the Commission staff has no formal subpoena power, and hence must rely on the cooperation of the relevant individuals and entities to gather information. At the conclusion of an informal investigation, SEC staff may recommend that the Commission undertake an enforcement action seeking sanctions, seek a formal order of investigation from the Commission, or conclude the investigation without recommending an enforcement action.