But you don't understand! The SinkHole is NOT a "real" company. And why should they bother with listing requirements and worry about being listed anyway, given the prospective sale of its burned and smoldering corpse for a mere $3/shr?
It would appear that somebody knows something that you do not, as the recent selling pressure has come with relatively substantial volume.
And you will now explain what one has to do with the other, especially in light of (a) the historical (hysterical?) earnings record and outlook; (b) the smoke and mirrors business model; and (c) the balance sheet that consists entirely of smoke?
aj, there is a difference between an investor such as Geo expressing an opinion, compared to an issuing company that is required to make statements of accounting fact to its investors. You cannot sue Geo for its opinion unless it offers as substantive support information that is demonstrably false. They can say that they think the accounting is soft, but they cannot say that the accountant is a known liar (and I am not suggesting this to be the case).
Having said that, understand that I am neither supporting nor am I rejecting Geo's opinions. I have not done enough work on my own to provide a basis for either owning or shorting this stock, although I do have some questions regarding the interlocking structures of AmTrust and its partners. So far, a quick look at the company's reserving trends did not show me any red flags, but at the same time I have some respect for Hearn's boots-on-the-ground information, and while his commentary is limited to the California WC market, I suspect the company's aggressive pricing may be a bit more widespread especially given current market conditions.
Did you notice that some turkey was buying the SinkHole at $2.98 in the pre-market hours this morning? Should we expect an 8K filing this afternoon?
On what basis, that you don't like their opinion or their estimates? What is misleading or factually incorrect?
It's a two-bit operation with about five people and $300 million under management. Twenty years ago the minimum number of tickets to be regarded as a real player was $500 million, so you now know where they rank. They have a website and they post quarterly letters to their investors. The Q313 letter explains their position in SinkHole and how they arrived at their misguided conclusions, and it is a real howl, screaming "ignorance!"
Another laugher is the slide presentation they give to potential investors in their funds -- they offer performance figures that make them look like they are trading on inside information. Then you look at the SEC-required performance disclosures and you realize that they know nothing.
They bought 980,000 shares in Q3 and increased their holdings to 1.7 million shares by 12/31/14. Shrewd! Here's what they have to say about themselves on their website:
"We find value through securities that are out of favor, overlooked or misunderstood, where an investment edge is more likely.
We invest in companies with strong balance sheets, an approach that we believe dramatically reduces our risk of permanent loss of capital.
Our research process is relentless and includes regular travel to see management teams, assets, customers and competitors firsthand."
Investment edge more likely? Strong balance sheet? Here, at the SinkHole? So much for that "relentless research process!"
PennyStocksWeekly is a rag that floods the boards with this same message. More people should flag these messages with the notation of "Report Abuse."
Why don't you do it again with Meadowbrook (MIG), so we can all laugh at you again. Same BS arguments -- cheap vs book, cheap vs tangible book, cheap on PE basis, blah blah blah blah. C'mon, Douggie, we're all cheering for you...step right up and get screwed again