I have no position in this stock currently so I am not bashing or pumping. I just do not see the issue here.
There are companies like Groupon that use very creative and questionable accounting. Like made up numbers and exotic accounting.
This case is not fake numbers but rather a timing issue. One that does not even appear sinister. I am familiar with the doctrine of Cramer. Accounting irregularities = sell. HOWEVER, this seems a massive overreaction.
I have no position either, but I am not sure it is quite as "who cares" as you say. They fired CEO and CFO, CEO is an institution at the company with a lot of power, so if it weren't a big deal, they prob would have tried to do anything to not fire him at least.
Also the press release from the audit comm clearly states, in addition to the $20 mill and $60 mill incorrect periods, that "the Audit Committee identified material weaknesses in the Company's internal control over financial reporting."
So I am not so sure that it is only the $20 mill and $60 mill...I don't know exactly what they are referring to, but could be more issues than just the $20 mill and $60 mill?
I am surprised at how positive sentiment is on this board...but I am open minded, so maybe I am too neg? Just seems like there is a lot we still don't know about the extent of the accounting issues to know what earnings really look like.