Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, April 05, 2006
Richardson Electronics (Nasdaq:RELL) Blows Up
The CEO leaves suddenly for personal reasons and is replaced temporarily by the Chairman. Earnings have to be restated because something funny was happening in the Italian subsidiary. Maybe they did not make suficient provisions for taxes (I'm sure the IRS will look into it). Regulatory statements cannot be filed because of the mess. We need to hang some directors for being asleep. Investors are not well served by accurate audit findings just before the corporate vehicle hits the wall and practically destroys itself.