Biotech Values

[DewDiligence]

LOL — MATK will restate earnings to properly account for depreciation of unused manufacturing facilities. MATK’s “unusual” accounting treatment was the subject of a recent page-one story in the WSJ (#msg-18025002).

http://biz.yahoo.com/prnews/070424/netu149.html?.v=1

The “LOL” above comes from the fact that, until now, MATK maintained that its accounting treatment was Kosher even though it clearly wasn’t.

None of this accounting stuff affects the value of MATK’s business; however, it showed the willingness of MATK’s executives to frost the numbers as a diversion when the business was not performing up to par. Management ineptitude has been an issue for this company on Wall Street for a long time.