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Magnum Hunter Resources (MHR) appoints Fred J. Smith, Jr. as it's new chief accounting officer,...

Magnum Hunter Resources (MHR) appoints Fred J. Smith, Jr. as it's new chief accounting officer, effective today. The company's current CAO, David S. Krueger, will assist with the transition through the end of the year. Yesterday, the company reported an error in its calculation of stock option expenses for Q2, which resulted in an adjustment down in its previously stated Q2 earnings.
Comments (3)
  • pomonajr43
    , contributor
    Comment (1) | Send Message
     
    An inadvertent error like that is unfortunate but understandable given the complexity of stock based compensation accounting treatment rules. I think the shorts jumped on that and pounded the stock with a relatively minor non-issue in the greater scheme of things.
    23 Oct 2012, 11:53 PM Reply Like
  • Brandond
    , contributor
    Comments (339) | Send Message
     
    Totally agree; as a CPA and ex CFO, I can tell you that the technical literature for stock comp is very complex. The error is a little embarassing but it is, after all, a non-cash charge and has zero impact on the fundamentals of the business. I see this as a non-issue.
    24 Oct 2012, 08:47 PM Reply Like
  • NuclearDickie
    , contributor
    Comments (233) | Send Message
     
    Agreed Brandond. I also am a CPA and have found this calculation extremely complex. I've taken advantage of the new sale prices on MHR. Buying in the $3.80s is a no-brainer. 35,000,000 shares were sold to those in the know for $4.50 back in May. I don't think you'll find a better entry point than $3.83!
    24 Oct 2012, 09:44 PM Reply Like
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