- SA contributor Copperfield Research accuses Web.com (WWWW -10.3%) of altering past financial statements ahead of a recent convertible debt offering, and thinks the company's actions could represent a violation of SEC Rule 10b-5 (covers securities fraud).
- Copperfield points out Web.com's Q2 report provides a materially different accounts receivable figure for Dec. 31, 2012 than what was provided in previous statements, which in turn helped it beat quarterly estimates.
- The firm also believes Web.com has been playing fast and loose with its deferred revenue add-backs, sees its declining deferred expenses as evidence organic growth is inflated (if not negative), and points out the company's CEO and CFO sold a big chunk of their shares before the convertible offering was announced.
- Copperfield assigns Web.com an intrinsic value of $5.96/share, or less than 1/4 its current trading price.
From other sites
at 4-traders.com (Tue, 1:32PM)
at CNBC.com (May 8, 2014)
at CNBC.com (Jan 30, 2014)
at CNBC.com (Nov 25, 2013)
at MarketWatch.com (Feb 17, 2012)
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