Poseidon shown to be a fraud.
I drank the coolaid on this one, and bought for what seemed like an upward rising path of dividends. The first drop you see in the charts occurred when they reported revenues way below expectations. That's when I sold, for a 50% loss. the downward churn after that is largely a function of stock holders realizing that there was probably significant misrepresentation of sales and profits.
The crash today was driven by the news release confirming fraud: the company's own internal audit shows that about 80% of the purported revenue over the last year "shouldn't be relied upon."
I expect you'll see some jail time for the key figures involved in the accounting irregularities.
So while the fraud is now out in the open, and presumably the bad apples will be soon ejected from the company, I wouldn't buy this, even as a speculation. They are in a very competitive market segment, and at best the company will be in turmoil over the next year fighting shareholder law suits. IMO, you should let the dust settle on this one.
JWB
