Let me clarify my post...
First, if CCME's numbers turn out to be 1-2% off, or even 5-10% off due to accounting errors that PWC or other finds, I do not expect any major fallout.
If PWC or other finds 1-2% or higher discrepancies that turn out to be "fraud" as in illegal, under the table, skimming off the top, intentional misrepresentation of the numbers, we are screwed.
The first task is to get PWC in there, and get them to stay through the investigation and then hopefully a direct contract with CCME to complete the audit/10K. That in and of itself is a major hurdle - one that I personally hold no hope for. Just because a law firm got them in via a back door does not mean a thing. It could easily be the law firm doing some CYA - making sure that CCME is not lying to THEM in order to get them to represent CCME. At this point we can all speculate all we want...in my mind that is how I got the biggest a** reaming of my trading career to begin with, so please understand if I sound a bit pessimistic.
If the firm's investigation clears and a month from now this firm and PWC is still in the door...I may breathe a little easier. Then the audit begins.
Every company makes some mistakes. Rounding errors, misinterpretation of very complex accounting regulations - even misinterpretation of how to accurately present the numbers. I think if this turns out to be a minor or plausibly honest mistake yet the business and cash are, for the most part all there, we are fine - in fact, probably back to $20+ with the uber squeeze.
Then there is the array of more likely outcomes. Inappropriate loans, intentionally overstated cash balances or bus counts, misrepresentation of paying clients, CEO or CFO having sold shares without appropriate SEC forms, a single person (within CCME, a bus company or otherwise) being found to have accepted a bribe - you name it, 100's of possibilities... Any of these - REGARDLESS of how little impact it has on the business and the company, and I believe the perception among traders will be highly negative and we see $1-2 - not to mention a likely delisting. NASDAQ has made it clear that they are not taking any chances.
Sure CCME is still there, still doing business and I actually believe will be doing business years from now. They are probably even making a decent profit. As all of us are fully aware though, trading is perception - not reality. If the shorts have anything to hold up and say "See we were right!" in the hands of Cramer, Muddy Waters, ole Herbie G. during a prime CNBC slot and every institution dumps. They are, after all, required to be responsive to their investors. If you believe retail longs can plug that damn up...well...best of luck.
Of course at this point it is all speculation. I have my shares and not a damn thing I can do with them until NASDAQ makes a move, just like everyone else. As mentioned 1,000 times by me, I hope like hell I am completely wrong - I have a LOT riding on this - but I have no reason in the world right now to believe I am.
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