The company’s management, president and founder Dov Moran and friends, have now realized that the committee is having difficulty deciding whether everything was above board or not. Why? Because in most cases the people charged with investigating are not sure if they know exactly what it is that they are investigating, or to be more precise, they don’t know how to examine all the criteria related to the options. In the meantime, time marches on, and Nasdaq, which “goes by the book” is turning up the pressure.
What amazes me is that the Americans have not yet decided to grant another year’s grace for adjustment. What will happen if the phenomenon spreads to companies on the Dow Jones? Will they relegate them to the Pink Sheets as well? Incidentally, more than 60 companies have so far announced that they will be setting up auditing committees for this issue, and that’s just the beginning.
Perhaps the public is beginning to view things in the right proportion? Notwithstanding what has been written here, M-Systems’ fall stems from pressures that are not connected to the company’s business, and therefore this is a buying opportunity. M-Systems is trading at multiples of 20 for 2006 and 15 for 2007, and it looks to me like an even better deal than Teva (TEVA).
Published originally by Globes [online], Israel business news - www.globes.co.il
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.