AI
Saturday, October 01, 2011 12:52:14 PM
Now CHME? You're like that kid that loves to play in the trash dumpster and constantly brings home putrid garbage to "show" to mommy. 
Don't bring that stuff home!
There are plenty of reasons why CHME would hire PWC despite having committed fraud. Remember that OEP owns this company. Naturally, OEP wants to know the extent to which they have been scammed before they try to pull money out at pennies on the dollar. CHME couldn't even get the world's crappiest auditor, Frazier Fraud, to sign off on their books, so fraud is established. The question is the degree, and to get that information, OEP needs this company "assessed" by a real auditor.
My advice to you would be to stop being so damn cheap. Sometimes, you get what you pay for. There are plenty of healthy, growing companies at attractive valuations with low short interest that aren't engaged in fraud, false disclosure, lying, pumpage, hyping, constant dilution, and so on. If you have to pay a P/E of, say, 10 or 15 for them, is that such a scary thing?
The time to be a value investor is when the market has crashed to a massively undervalued state. The process has started, but we're not there yet. We have about 400 S&P points to go before mass value will be something you need to worry about. Until then, buying ultracheap heavily shorted stocks = being fooled by garbage = losing money. Every single name that you and almost every other long here has pumped over the last 6 months has conclusively proven that thesis. Granted, some people have made nice bounce and hype trades, but not a single person has made a good investment, i.e., something that can be held for longer than a few months without incurring losses.
Don't bring that stuff home!
There are plenty of reasons why CHME would hire PWC despite having committed fraud. Remember that OEP owns this company. Naturally, OEP wants to know the extent to which they have been scammed before they try to pull money out at pennies on the dollar. CHME couldn't even get the world's crappiest auditor, Frazier Fraud, to sign off on their books, so fraud is established. The question is the degree, and to get that information, OEP needs this company "assessed" by a real auditor.
My advice to you would be to stop being so damn cheap. Sometimes, you get what you pay for. There are plenty of healthy, growing companies at attractive valuations with low short interest that aren't engaged in fraud, false disclosure, lying, pumpage, hyping, constant dilution, and so on. If you have to pay a P/E of, say, 10 or 15 for them, is that such a scary thing?
The time to be a value investor is when the market has crashed to a massively undervalued state. The process has started, but we're not there yet. We have about 400 S&P points to go before mass value will be something you need to worry about. Until then, buying ultracheap heavily shorted stocks = being fooled by garbage = losing money. Every single name that you and almost every other long here has pumped over the last 6 months has conclusively proven that thesis. Granted, some people have made nice bounce and hype trades, but not a single person has made a good investment, i.e., something that can be held for longer than a few months without incurring losses.
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