There is no widespread staffing issue at E&Y There is not one single news release from any other Canadian corporation that delayed quarterly results for auditor staffing issues. If it was truly a widespread E&Y problem you would see issues pop up everywhere and see multiple news releases.
And why didn't they prioritize publicly traded issues that have a negative brand effect and deprioritize private company audits?
The sad reality is that it is an E&Y staffing issue specifically at Quarterhill. What requires so much more time at Quarterhill that the audit couldn't be completed in time?
The cost of this blunder is significant. Markets roar 3-4%. QTRH was flat except for the 4:00pm trade for 100 shares that Cabbie put in.
REKR up 11% today. ITI up 8%. QTRH flat.
The market has spoken. Companies that already are pure plays are better than complicated plays - which might be a future pure play (where employees can't get their homework done on time, asking for an extension.)
No one shorting the debentures covered today. Holding strong. Unfazed by the roaring markets today. I guess they must be confident in their bet.