Post by
Bean_and_Dunn on May 02, 2015 5:15pm
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.
Comment by
janeintoronto on May 02, 2015 7:23pm
I admit to laziness about researching this company. Who is the Zucker Trust (surely not THE Zuckers) and why have they taken an interest in this micro company?
Comment by
valuedude1 on May 03, 2015 8:55am
they have to throw out this mgmt team in order to turn this around. Get some shareholder friendly team in there to drive value. This guys are running this business for paycheques and not for shareholders.