TSX:IBG.DB.E - Post by User
Comment by
teshon Mar 24, 2013 2:13pm
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Post# 21160380
RE: RE: Time to buy/ accumulate
RE: RE: Time to buy/ accumulate My concern with IBI (and the reason I sold my shares) is I can't trust them to provide proper guidance for the following reasons:
1. In their 2nd quarter MD&A dated Aug 8/12 they offered no warning that the 3rd quarter would be a significant reversal of what had been a solid series of improving quarters.
2. In their 3rd quarter MD&A dated Nov 9/12 they offered no warning that the 4th quarter would be poor nor that they could face the huge writedowns in WIP, Accounts Receivable and Goodwill. In fact THEY ALL BUT GUARANTEED THAT THE 4TH QTR WOULD BE A RECORD QUARTER. How can any responsible (and/or capable) CEO/CFO team make this sort of mistake almost halfway into the quarter for the second quarter in a row? Whether it was intentional or unintentional really doesn't matter as the outcome is the same. What bothers me further is that I had a telephone conversation with the CFO after the 3rd quarter results were released and he reiterated what they had voiced in the conference call.
So how can we trust what they are telling us now not necessarily because they aren't telling the truth but because they have shown for 2 straight quarters that at best they don't know. Good luck to those of who remain as investors and I really hope that management has learned their lessons and will perform better than this in the future. It will take a lot them doing things better than this for me to even think of investing in IBI again.