TSX:IBG.DB.E - Post by User
Post by
teshon Apr 18, 2013 11:34am
92 Views
Post# 21278533
Trust has been lost
Trust has been lost You could be right about the shorts. However another factor that I believe is hurting the sp is that the market has little confidence in the guidance provided by management due to how far off they were concerning the 3rd and 4th quarters. You will recall that they all but guaranteed a record 4th quarter. Even excluding the year end writeoffs the actual results were far from that. Being required to take those writeoffs regarding receivables and WIP as part of the year end audit probably only exacerbated the problem. This will leave an overhang even in the face of any improved results (if in fact they happen) as the market could (until the 2013 fiscal year audit is completed) still have concerns that there might be something lurking in the weeds. It's one thing to have a decline in performance it's quite another to be so far off in their guidance at the same time. If I'm correct the latter will take longer to overcome.