Different news for PSN Poseidon Concepts halted at 5 a.m. PT
Ticker Symbol: C:PSN
Poseidon Concepts halted at 5 a.m. PT
Poseidon Concepts Corp (C:PSN)
Shares Issued 81,096,828
Last Close 2/14/2013 $0.27
Friday February 15 2013 - Halt Trading
Poseidon Concepts Corp. has been halted at 5 a.m. PT on Feb. 15, 2013, because of a cease-trade order.
Globe says shorting Poseidon Concepts pays off for LDIC
Ticker Symbol: C:PSN
Globe says shorting Poseidon Concepts pays off for LDIC
Poseidon Concepts Corp (C:PSN)
Shares Issued 81,096,828
Last Close 2/14/2013 $0.27
Friday February 15 2013 - In the News
The Globe and Mail reports in its Friday, Feb. 15, edition that money manager LDIC has been shorting Poseidon Concepts for the last year. The Globe's Martin Mittelstaedt writes that LDIC was one of the few bears in an investment community that had been almost uniformly bullish on the prospects for Poseidon. The stock tanked Thursday following revelations by a special committee of the company's board that most of its revenue for the first three quarters last year did not exist, vindicating LDIC's negative assessment. "I think this was really a triumph of diligent research work up against a company that, for whatever set of reasons, were not really reporting in a transparent way," says LDIC president Michael Decter. LDIC made about $1.2-million in the trade, spread over three mutual funds it advises. The coup by LDIC is all the more remarkable because investment analysts had been big boosters of Poseidon. Up until last May, all of the approximately 10 analysts who were following the company had "buy" recommendations. Mr. Decter says he was made suspicious by reports that Poseidon's profit margins were around 90 per cent. He figured such lush returns could not possibly be sustained.
Globe says Poseidon sinks on vanishing revenue
Ticker Symbol: C:PSN
Globe says Poseidon sinks on vanishing revenue
Poseidon Concepts Corp (C:PSN)
Shares Issued 81,096,828
Last Close 2/14/2013 $0.27
Friday February 15 2013 - In the News
The Globe and Mail reports in its Friday edition that 11 months after its stock market debut Poseidon Concepts traded to a high of $16.05, but on Thursday finished at a lowly 27 cents. The Globe's Nathan VanderKlippe writes the shares fell from grace following a major accounting revision that placed into question much of Poseidon's 2012 revenues. On Thursday, Poseidon said it should not have recorded $95-million to $106-million in revenue in the first nine months of 2012, a period when the company reported revenue of $148-million. J.C. Clark analyst Martin Braun says, "This is probably the ugliest story that we've seen on Bay Street since Sino-Forest." The Globe says Poseidon was a victim of its own success and the speed with which others copied it. Poseidon had several "buy" and "sector outperform" ratings from analysts. Poseidon's key innovation was a tank, which looks a bit like an above-ground swimming pool, to hold water for oil and gas drilling. Made up of insulated panels, the tank could be moved with a truckload or two and set up in 24 or 48 hours by a small crew, using a bolt-less connection system patented by Poseidon. Poseidon exploded: from 170 tanks in November, 2011, to 440 today.