Happy New Years to all. 2007 starts with several mouthfuls of very bad champagne that should not be swallowed. These companies issued adverse news on Friday after market close before the New Years Day break, which has been extended for one additional trading day to honor President Ford. Few if any investors are looking making these press releases Reg FD challenged.
I would also like to thank Santa for his post. The wireless link in your sleigh must be something else.
Accentia Biopharmaceuticals, Inc. (OTC:ABPI) released the results for the fiscal year ended September 30, 2006, as reflected in the Company's annual report filed with the SEC on December 29, 2006 in a News Years Day press release at about 0900 ET. One of the very few companies to conduct Reg FD corporate communications on New Years Day reported significant losses but wanted investors to focus on how they have been achieving milestones such as Fast Track designation from the FDA for SinuNase, a potential blockbuster prescription intranasal amphotericin B formulation for chronic sinusitis and commencement of partnership discussions for SinuNase with pharmaceutical companies that have existing respiratory franchises. Essentially they have to make a deal quickly. Not the strongest negotiating position.
SIRVA, Inc. (NYSE:SIR) announced on Friday around 18:00 ET preliminary financial results for the six months ended June 30, 2006). The Company announced a preliminary loss from continuing operations of $37.6 million, or $0.51 per diluted share, for the six months ended June 30, 2006, as compared to a preliminary loss of $60.1 million, or $0.82 per diluted share, for the six months ended June 30, 2005. The company also indicated that these numbers may be restated (which means they will be restated). Investors never make money when management is twisting in the wind. (The company has secured a one month extension from NYSE)
American Technology Corporation (ATCO) announced that the filing of its Form 10-K for the fiscal year ended September 30, 2006 will be delayed past the extended December 29, 2006 due date. As previously reported, the company has been conducting a voluntary review of its historical stock option and stock grants, and has not yet completed that review. The information they have reviewed to date does not indicate misconduct or fraud by any member of the Company's current or former management. Why they cannot issue earnings which will at least indicate profitability before the per share breakdowns is tantamount to cowardice. Other companies do issue reports with the proviso that they expect some form of restatement. Investors are flying very blind.
Cycle Country Accessories Corp. (NYSEMKT:ATC) announced its earnings of .08 cents per share for the year ended September 30, 2006 and .15 cents per share for the year ended September 30, 2005. The company missed its own guidance because of extraordinary and non-recurring items. Essentially they have been blindsided and very surprised by it all. The explanations are very poor. This usually indicates a very poor knowledge of the subject matter.