Hannover House Inc (HHSE)

[mdimport]

I won't buy HHSE until the audits are complete and filed. I noticed the volume drop over the past few months since the audit completion speculation started up again and I understood that many other people are waiting on the same. Now at some point the volume drop translates into a price drop since there's less demand.

I believe part of the reason for the price drop is also due to the new $0.01 rule and investors making a distinction between SEC filers and non-SEC filers (HHSE is only voluntary at this point in time).

It doesn't matter whether or not I believe HHSE management is are frauds or not, simply that the audit is completed as part of the uplisting of HHSE (also includes Form 10 filing). Enron had Arthur Andersen as their auditors (one of the Big Five at the time), so auditors don't guarantee lack of fraud. We can see auditor failure as a root of non-timely detection in many other cases, so auditors aren't the be all and end all some portray them as.

To address my opinion as to whether HHSE management is fraudulent: one would have to be a brazen idiot to become a voluntary SEC filer and commit ongoing acts of fraud (8-K's, 10-Q's, blog, PR's). Is it possible? Yes. Is it likely? No.