IBI Group Inc T.IBG.DB.E

Still can't trust the numbers

[tesh]

The problem is that you don't know to which periods these writeoffs pertain so it is difficult to calculate the go forward earnings and cash flow. As I posted months ago when this happened the first time (truly shocking that it has happened twice) this is not the same as a goodwill or some other capital asset type of writedown. They probably pertain to a number of contracts over a period of time so go to the heart of trying to figure out their ongoing cash flow. Despite the fact that the new CEO can say he is cleaning things up this is the second time after the auditors probably forced the first set of writedowns at the last year end so how will the market trust any numbers going forward? If I was still a shareholder I would be trying to dump my shares as soon as the market opens as I think tomorrow will be a debacle.