My response/Opinion
1.The December 1st date is simply 6 months from the date the new CFO was hired. I know you know this. To be honest it was my original over/under date after the 8k was issued announcing this situation on May 31. I did some limited research through Harvard's site and some I know with specific knowledge and also found some comps which are very hard to come by considering the situation. Anyway, with all that being said and considered my first non biased opinion was 6 months. I believe the financials are a 6 or 7 on the 1-10 F'ED up scale.
2. I know the CFO does not do "the" audit. However, the CFO is responsible for all of the CDNL filings from this point forward. I now also know from a news reporting article due to a disgruntled CDNL vendor that the CFO has been confirmed by them and he basically stated they were working toward completing financials and most concerned about requirements needed to obtain more money from China. Also for your information if you do not already know there are many different types of audits.
3. The company you work for being audited in a one month time period shares very little if not 0 conditions similar to CDNL'S audit and therefore should not be considered. Revenues is not the only factor and may even prove to be Kevin's most accurate number on those filings.???We will see.
4. I guess many people say many different things and have different opinions. Some based on education, experience or research and others on feelings or agenda. I simply try to apply probability to these situations after gathering as much facts as possible. I always believed somewhere around six months was the timeline even when I did not want to believe it. Now it looks like reality.
5. I have already reevaluated my opinion of this company. No need to wait until December 1st. I am very confident that I understand what is happening here. I have actually been through it a couple times myself. I call them growing pains. The level of pain and the severity of it is usually dictated by the amount of money your willing to personally spend and or borrow to start the start up. The limited resources of this start up called CDNL along with the CEO's ability to complete certain functions and processes has showed itself for what it truly is. I have already lowered my price point (short term). I simply try to apply valuation as I do with any company based on product, market, share structure and all other relevant factors including having a CEO who is really a Scientist IMO. I like the product (RIGHT NOW) maybe not next year. I LOVE that Cardinal is 1st if not very close to 1st at cracking this market. I also like the joint venture and the patents. Therefore, I will stay long and adding especially at these prices.
Have a good one
