Does anyone make any sense of the changes in the account changes? How does one plug this into the decision of whether to buy, sell or hold. This news sounds concerning. The CEO has decided to purchase 2M common stock through Sept 2012. Is this move to offset the negative accounting news??? What a can of worms for the investors. I am on hold, but starting to wonder. Help me_Hanna and Misesaw comments would be appreciated as I tend to value your opinions.
Termination of Engagement of Jewett, Schwartz, Wolfe & Associates
On September 19, 2011, Jewett, Schwartz, Wolfe & Associates (”JSW”) advised Andatee China Marine Fuel Services Corporation (the “Company”) that it was discontinuing its public company services and therefore was no longer in a position to serve as the Company’s independent registered public accounting firm. As a result, JSW has resigned as the Company’s independent registered public accounting firm effective as of September 19, 2011. The foregoing was reviewed and approved by the Audit Committee of the Company’s Board of Directors.
The reports of JSW on the Company’s financial statements as of December 31, 2010 and 2009 and for the fiscal years ended December 31, 2010 and 2009 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.
In connection with the audits of the Company’s financial statements for the fiscal periods ended December 31, 2010 and 2009 and through June 30, 2011 (and through the date of JSW’s resignation), (i) there were no disagreements with JSW on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to JSW’s satisfaction, would have caused JSW to make reference to the subject matter of such disagreements in its reports on the Company’s consolidated financial statements for such years, and (ii) there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.
I would be interested to know if anyone on the accounting staff is Chinese or if anyone at the company knows how to speak Chinese. There must be some reason this company was selected. I wonder what Mizesaw would be thinking at this point. The stock is moving up so at least that is positive.
I researched, as best I could, the new CPA firm (Daszkal Bolton LP) and conclude that they have no expertise in Chinese firms or the business that AMCF is in. Google also has story about one audit recently completed for Greyson (GYSN.pk) It's selling for a nickle. I was holding back on purchase of AMCF until audit firm change. I'm still not buying after this change to Daszkal Bolton.
I was just chekcking in too. It throws kink in the thinking once again. I'm actually waiting until at least the 3rd quarter report to buy in. If they do end up going for more aquisitions during this time, I'll need to seriously look at their debt again.
With Mr An sucking up shares and aquiring, it does look a bit like they're going for selling off the company. Run up the book value and sell to a bigger fish that can close the debt because the market size is attractive.
If you read the press release regarding the accounting change, it CLEARLY implies nothing was wrong. Something is wrong if anyone wants to let this play with their head. If anything they upgraded to a better firm. One of the bigger ones in Florida.
The $2 million share repurchase probably did coincide with this accounting news just to keep the nervous nellies at bay.
In my opinion the stock is dirt cheap to begin with. They did mention on the con call that they were going to begin to repurchase some shares. It's a good thing in general. Frankly I don't think $2 million will move the share price, and that press release does imply regulations as to not move the share price. They also have a year to do it, and actually dont have to do any of it.
The markets su *ck in general and sure that adds to anxiety but I still think you have a real bargain here. JMHO
I agree with completely with northstarsz. The accounting firm is quitting the public auditing business. Nothing Andatee could do about that. It's good riddance to that auditing firm anyway. I don't know much about the new one.
How can an intention to buy up to $2 million dollars worth of the stock by the CEO (who already owns 58% of the outstanding shares) be anything other than good news?