DRI Healthcare Trust T.DHT.UN

New long

[SONOFFERGUS]

Hi DRI people.

I haven't been following this stock but dipped my toe in on the selloff.  I've had success buying the overreaction to accounting or executive shenanigans that I assume are unlikely to impair the business in the long run.  IMHO a 25+% haircut is excessive.

Can anyone provide info on my assumption?  Does the CEO matter much to this business?  Is he a guy you would happily trade for a newer model?

I have done a little work on the financials and note lots of deferred compensation that I expect the CEO (and CFO, is he turns out to be part of the fraud) will end up forfeiting.  So the fund is +$7.5mm-ish of reimbursed expenses, its prior-period earnings were understated by that amount, and perhaps a very large dilutive position may have gone poof.  Obviously there is much grief ahead but perhaps the trust will end up in a better position.