Hi! Nice TA Se�or Chicago! Let's view if you are correct.
We have a very unusual board for Yahoo. Could be the strongest I have viewed.
I'd like to validate a # of the statements that Burrows made in his "The Sun Also Rises" published on 4/25. I'd like all of us to analyze his statements in detail line by line. If we decide his statements are not true, we need to respond in full force to this guy.
He said, "Solarfun had a couple of issues holding back shares. It was having trouble procuring enough silicon wafers, and the wafers it was getting weren't always of the best quality. Second, the company's independent auditors said it had deficient financial controls."
1. I have no evidence that these issues are the issues that have held back the shares. Can anyone validate that sentence? What is his source for that statement? What I have viewed in the T&S data that is holding back the shares is a major shorter.
2. Where is he getting that SOLF had "trouble" procuring silicon? What are his sources?
3. I have never viewed anything about the wafers not being of the best quality. Where is he getting this from? Is it true? Can anyone substantiate this.
4. There is mention of material weaknesses in financial controls in the prospectus. However, if Burrows bothered to read, he would have viewwed this: "In order to remedy these material weaknesses, we adopted and implemented several measures to improve our internal control over financial reporting. In addition to appointing a new chief financial officer in July 2006 to lead our company�s financial and risk management and a new principal accounting officer in August 2006, both of whom have extensive audit experience and U.S. GAAP knowledge, we established in November 2006 an audit committee composed entirely of independent directors to oversee the accounting and financial reporting processes as well as external and internal audits of our company."
There is other text as well detailing a strengthening of financial controls.
5. Burrows adds, "When word got out that a rival company's main wafer provider got hold of additional supply, investors read into the news on Solarfun's behalf, sending shares up 36% in a day.
I'm in several rooms with 1000 traders. I did not view ANY evidence that that was the reason the stock went up. Who is that co.? Is that sentence valid? What's his source for this?
6. Burrows adds, "The next day, April 17, Osborne downgraded the stock to Sector Perform based on valuation. "We do not believe Solarfun has seen any change to its wafer supply situation and would therefore use this as an opportunity to lock in profits," he wrote."
By the way, I believe that CIBC World Markets is shorting SOLF. It is very unusual for an analyst to downgrade a stock after a 1 day pop. Osborne must be worried. Before the pop, I clearly viewed one player shorting SOLF. How come he hasn't upgraded SOLF on the SOLF supply agreement?
Let me know.
GREENDOME "Providing the Best in Functional Analysis"
Haha. So the "deficient financial controls" statement really meant that they needed to hire a few extra accountants which was done.
The reporters needed to muck rake so they simply honed in on the deficient financial control sentence without providing further explanation. The reporters wanted to make this look like Enron when really all the company needed to do was hire a few experienced accountants.