There is no fraud (at least nothing proven as of yet). There are lots of ACCUSATIONS of fraud, most of which have been blown out of the water by the amazing efforts of WCT Bills and others, but that doesn't really matter. The accusations are out there so the headlines read "Deloitte Resigns From CCME Under Accusations of Fraud". I don't know about you, but that's enough to make me want to run for cover. Shorts... WINNING!
If you think about it, for the shorts the more outrageous the accusations the better! One says it's a phantom company, the next says they only have 500 buses, price target of $5, price target of $3, it's all fun and games to them. Now the accusations are out there and people are talking.
If the shorts presented a logical case we'd all just bail. There wouldn't be anyone left to buy the shares they're selling or sell the puts they're buying. Meanwhile they're laughing their asses off at how smart we all think we are.
Basically if there's actual fraud or not doesn't matter, the result is the same. All they needed was a stumble. Somebody knew at some point that DTT wouldn't be able to sign off on the audit (for any of a hundred reasons) and that was enough information for the shorts to destroy the company, run off with all our money and leave us pointing our fingers at management.
I'm not saying management is innocent, they screwed up royally and handed the shorts all the ammunition they needed to take them down. Didn't really take much.
I may be way off base with all this, but you gotta admit, it makes sense.
Then all these shorts coordinate these attacks knowing DTT would uncover the fraud.
Again,for me, there was nothing the shorts presented that knocked our socks off especially after people started to uncover all the errors the shorts were making.
