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.
Monday, May 08, 2006
Zale Corporation More Executive Casualties
Zale Corporation (NYSE:ZLC)continues to lose executives. Late Friday well after market close and when most investors had turned off their screens, Zale announced that Mark Lenz Group SVP and CFO had been placed on administrative leave. It appears that Mark Lenz's infraction dates back to a lack of timely disclosure of vendor payment treatments to the outside auditor. The payments had been pushed back from the last two weeks of fiscal year end July 2005 to first week of Aug 2005. Zale Corporation has experienced a wave of executives leaving for various reasons. The SEC is also investigating accounting practices. But strangely the board seems quiet and invulnerable. When so much is rotten it really is the boards fault and responsibility. The stock has not performed well in the past year.