When does this accounting negligence become a crime?Take the Zucker Family Trust for example. They bought huge amounts of stock with every expectation that the books were in order. The first 3 quarters of the year showed a reasonable if not great profit. Nordex management proudly stated that they had hired 20 people to operate their Johnex product line. A deal with the Pacific Group of Companies was oft touted. "Enterpreneur of the Year" No hint was ever given that there was $670,000 of questionable assets on the books.
This amount of error is large enough that it is material in nature. A full explanation is required and as soon as possible. A "bookkeeping error" just does not cut it. What kind of weird system are they keeping at Nordex?
I sincerely hope that the ZFT can bring some much needed discipline to this company. Why for instance would Nordex run the Johnex production line with 20 people if they were not able to sell what they manufactured? Yes you have to build some inventory so that you can ship right away but surely you have to look at the strength of your market and pare back as necessary.
The problem as I see it is that Taylor treats shareholders as completely expendable. He desires to grow top line revenues at any cost, whether shares are sold at $0.60 or as low as $0.15 and even if the shares are sold at far below book value.