This one came up on the NQ m.b. recently so I don't know all of the details but when you admit you were hiding information from your auditor, then fire them and replace them with a no name who conveniently ignores the allegations of fraud, it's hard to take them seriously. In any event longs here banking on the replacement auditors blessing on the 10K as a get out of jail free card might want to take a peek at ONP. Another ChiScam I only followed cursory but they were supposed to be the poster child for vindicated ChiScams a couple of years ago, they're legit auditor BDO continues to bless they're financials and yet they trade for a whopping 2.6X earnings. Even if the SEC and or PCAOB allows the no name to get away with just ignoring the fraud you still have to deal with the markets judgment.
You're comparing apples to oranges. This blurb has little relevance to FAB and probably not so much for NQ either. But we get the picture. You are a short lover and are here to create fear for FAB longs. Yo're a fear monger. You'll have to research and analyze sharper to get the impact you are seeking. You can't just find some blurb and slap it in and expect to get results.
I get your point, why would you want to know how another more high profile ChiScam who got an auditor to sign off fared. It's much more adventurous to go on blind faith that getting a no name auditor to play ball will solve all of your problems.
" In any event longs here banking on the replacement auditors blessing on the 10K as a get out of jail free card might want to take a peek at ONP. Another ChiScam I only followed cursory but they were supposed to be the poster child for vindicated ChiScams a couple of years ago, they're legit auditor BDO continues to bless they're financials and yet they trade for a whopping 2.6X earnings."
I've previously bought up ONP as a comparison to FAB, but not as a business but as a company that was wrongly accused of fraud by the shorts.
They settled their lawsuit for 2M after about 2 years, which I expect FAB will do. It's legal blackmail, but the insurance company pays for it and it removes the legal expenses and I guess this is just how business is done now. Many small law firms are in business just to promote this scam. They don't do any of their own investigations, they just piggy back on whatever negative news isalready out on the internet (in FAB's case the Carnes Scam is just cut and pasted by the lawsuits). It seems every stock I followed is sued now immediately after they miss earnings estimates.
But you can't compare ONP business (brick and mortar) with FAB's (mostly digital). In order for ONP to increase their revenues they need vasts amounts of capital (just announced a secondary) while FAB has grown about 50% while"plant and equipment" has remained flat at 16M.
At 2.6X earnings they may have settled what ever law suit you are referring to and BDO signed off on the financials a couple of months ago but the street ain't buying it and is pricing them as a fraud. As I said, I took a cursory look a couple of years ago so I only have rough idea about the allegations against them but that's not the point. The point is, even if a fraud manages to weasel into getting an auditor to sign off on their financials the street isn't going to buy it. IE: to get more than a 2.6X multiple you need the real money investors to trust you, not just a bunch of Yahoos.
When I read this I come to the conclusion mykweed is a lot like LBCB.
"One more point, I never said PwC resigning was the ONLY possible outcome. I've always said they would resign because in my opinion that's the overwhelmingly likely outcome. Anything is "possible" and I would think a five star bonafide lawyer like yourself knows when I state something that hasn't taken place yet it's my opinion.
In any case there's virtually no chance at this point NQ gets an unqualified opinion unless they come clean and do a massive restatement of past earnings. I seriously doubt it and I still believe that PwC likely already resigned. However you ain't twisting this around to be a binary proposition on resignation or no resignation. NQ's a fraud and whether they are outed via resignation or massive restatement the issue is whether they are a fraud, not how they were outed for being a fraud."
Both are big on using the "opinion" and "fraud" word.
Actually after looking over a few of his comments I'd say he's either LBCK or the twitter version of him...doesn't yap quite as much.
It's clear he fell for the Block Scam....while LBCB fell for the Carnes Scam.