Cemtrex Inc (CETX)

[glbeaty]

If what I want to believe had anything to do with how I invested, I wouldn't be a very good investor. Confirmation bias is a hell of a drug.

That said, my inclination is to side with management. They have fiduciary responsibilities, making them criminally and civilly liable for fraud. If they were planning to flee the country with ill-gotten gains, you'd think they'd of been selling more stock and not buying condos in NYC. Pearson meanwhile has a very poor track record and probably hasn't been published for any past libelous articles.

That said, I think Pearson did raise some legitimate concerns. While he obviously has no strong desire for accuracy in his reporting, I highly doubt he'd mind being right once and a while. The market clearly discounted CETX's accounting, given the low PE it traded at despite what appeared to be stellar growth.

If I could find a good explanation for why some shares seem to have gone missing, I'd be inclined to purchase more warrants before management does.