Seeking Alpha dives following Copperfield Research report

  • SA contributor Copperfield Research accuses (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'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 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 an intrinsic value of $5.96/share, or less than 1/4 its current trading price.
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Comments (2)
  • J Mintzmyer
    , contributor
    Comments (3856) | Send Message
    So apparently CR retracted some of their stuff? What's the real case here?
    30 Oct 2013, 04:04 PM Reply Like
  • SilverD19
    , contributor
    Comments (211) | Send Message
    I'd to know that as well. It sounds like they only retracted part, all of the other points are still viable, in my opinion.
    30 Oct 2013, 05:33 PM Reply Like
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