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djsp - Mentioned DJSP smelled 'iffy' in an earlier (reply) post and ran into this news today-

08/16/2010 07:06 PM by avoidthegarbage



http://southflorida.bi...

This part looks interesting-

"McCollum said his office also is looking into whether the law firms created affiliated companies outside of the U.S., where the allegedly false documents are prepared. However, there was no clear indication McCollum was referring to Stern's Manila operations."

It'll be interesting to see how this one plays out. I need to dig more on it and currently have not shorted it but thought I would put the food for thought out there.

The article I think appeared Aug 10 apparently so this stuff may already be priced in and stock rallied today. That said, the share structure has always bothered me since I first looked at the company when it was over $10 and mentioned on another forum.

If thinking of shorting this, please do more DD than what I have here! I'm just putting up this article since I ran into it for sake of sharing. Good luck everyone.

Rating:
5

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  • 08/17/2010 06:39 PM by Dave Pinsen

    Interesting, I'm going to have to take a closer look at this one. BTW, mentioned you in this contest update post: http://steamcatapult.c...

    Rating:
    4
  • 08/17/2010 10:51 PM by avoidthegarbage


    Looked like the CEO was pocketing most all the earnings in prior years so how to follow the cashflow trail historically for the company until they publish a quarterly report or two as public company where CEO is not banking most of the profits? All I can find is the 20-F filed for way back in Dec 2009 period.

    It'll be interesting to see how the company uses 'earnings' whenever they get around to actually filing a Q report. In the meantime, the prior years 'earnings' don't show as cash or book value on the balance sheet cuz they supposedly went to CEO looks like.

    Also saw this apparently filed in July 2010:

    http://www.scribd.com/...

    There's also the pending class action shareholder suits apparently:

    http://finance.yahoo.c...

    http://finance.yahoo.c...

    None of that stuff is new news but just backs up the potential stink factor somewhat IMO. Looks like there are already over 1 million shares short I think.

    Rating:
    5
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