It does not seem they want to sell. Does not seem to be listed with a broker and on market. Maybe they are working a deal but it does not feel so from a distance. Probably they do not care about share price at this time. If they do then they are failures. Agree this is either great or awful.
As I sit here considering it occures that perhaps other errors turned up as the known mistakes were investigated. If they have scared the outside auditing firm it will be very difficult to get a quick sign off that the financial records are reliable.
When one has had a lousy accounting system there is a good chance there is more wrong than just some inter-company sales incorrectly accounted for. Sort of the more you look the more you find. Unfortunately a public accounting firm can't go with don't look and don't tell. The quality of internal reporting is even more critical when a firm is publicly held which makes one cringe when the majority owner is used to having a universe of privately held firms.
Makes me wonder if the new CFO is happy she took the job. Might be more than she bargained for? Might be touching accounting problems she is not completely fluent in? Take a job running a set of books for a small publicly held firm with no debt to speak of - how hard is that and then she gets whacked with cleaning up a prior mess that might reveal more prior failures in the accounting system. It is a different and wider group of skills and I doubt if they brought in enough (or any) help to assist her. You can be a functional accountant is one area and be without skill in others. Good chance she is puking at night and wondering why it happened to her.
Price of stock drops like a rock because investors realize there is something significantly wrong either with the line or support parts of the firm. Majority owner buys minority interest for 35 to 50 cents a share and goes his merry way?
I am uncomfortable the new CFO has background fixing errors in prior year's inter-company sales to restate financial statements and the outside auditor is uncomfortable with her work so far. I don't think she is a heavy weight and ERB seems to have a history of not supporting good financial reporting.
She still has a few weeks which should not have been necessary if the problem was just a simple restatement of well maintained but incorrectly reported data. A decent firm would have a large accounting firm and brought in outside auditors in mass to get this done fast and right. This firm is a tiny client and one is not going to get a favor from an auditing firm trying to protect a large annual fee.
Hold your breath for a few weeks. Maybe these folks like drama or just waiting for a deadline to file a report. It is about what one might expect from a guy who is from India and self made probably not realizing the serious of this or just not in tune with what is needed. I feel sorry for the CFO who might be in over her head and knows she is drowning.
Or maybe they report in time and all is roses : ) !
This is the only firm I have seen where members of the BOD appear to actually make a terrific profit if the firm is driven into BK. If you like fun go back and look at the bridge loan they used a while back. If you are a mean guy call up some lawyers who do this kind of thing and are always looking for oppertunities. Maybe these folks can be gone after personally or maybe there is insurance if there is anything not kosher going on. I don't know if everything is kosher or not and have no opinion, but you can find a list of these legal vultures by looking at the firms who recently tried to go after ERB in the headlines section of the Yahoo board. If your concerns are valid then these firms will go after these folks. I am sure you can tell them where to initially look.
If he were stupid enough to buy stock would you be confident he was smart enough to have any chance of running this company. Burning a million+ a month means the clock is again running out. Look to figure out where the residual assets go in the event of a BK. Maybe to the preferred shareholders? Who could they be : ) ?