Redwood Group International (RDWD)

[scoobey-do]

mythbuster, My view on S3's reinstatement has always been the same. S3's 10-Qs and 10-Ks have always been sloppy to say the least with errors and misclassifications. For instance, S3 reports the investment in FSIN as a current asset to make ratio of current assets to current liabilities look better.

We all know that S3 will not liquidate the FSIN investment within one year, so it should be classified as a long term debt. That being said, I have reviewed S3's latest 10-Q and I feel that it looks good enough for me to continue to hold my investment in the company.

I do not believe that Jim Bickel was aware of how far out of compliance S3's 10-K was and he was very careless in allowing the 10-K to be filed without the Auditor's letter. It is like he is used to having his own way and didn't relies how much power the SEC had over the reporting of public companies.

S3's filings reminds me of current building codes. It is like having a 600 sq ft house in a 2000 sq ft neighborhood. The small house was grandfathered in and, as long as it stays intact, it is there to stay. Once it is tore down to build a new house, the house must be build to the current building codes or atleast 2000 sq ft.

Once S3 was knocked out onto the pinks, it will have to bring it's filings up to current regs before SEC will even consider allowing S3 to be reinstated. IMO, S3 should consider hiring a new accounting firms.

scoob