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Alias Born 06/10/2011

Re: jimbonano post# 84

Friday, 06/10/2011 5:01:12 PM

Friday, June 10, 2011 5:01:12 PM

Post# of 118
CELM - Check out a stock with a similar situation - SDTH (I know this because I kept 10 shares of SDTH). That stock was trading in the mid 3's, was delisted and today it started trading on the pink sheets OTC and closed at around .27. One can not know what will happen to CELM, but my guess is that we could see something similar. The last I knew, SDTH was trying to do whatever was needed to stay compliant, but in my humble opinion, I don't see that the folks at CELM have any intention of doing that. It appears to me that they have had a number of opportunities to get to the bottom of whatever is the problem and they have blocked all attempts to do so. The investigative committee is disbanded, the Board is decimated and they have no auditor. This is one time that I really want to be wrong, but if they are delisted, there is always the chance that they will get it together and become listed again, but all of that takes time and the reputation of the stock has to have been badly wounded by this fiasco. And then, if they have not been reporting their actual earnings and have been overstating them, as been implied by some of the information in the SEC docs, and if they have been overstating them by a significant margin, then the stock will trade based on the acutal earnings and not what traders have been acustomed to in the past. And it is going to take time to repair their credibility. Does not look like a favorable scenario to me. I would like to be surprised.

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