Medinah Minerals (MDMN)

[easymillion]

Audited Financials for all “Penny” Stocks…Really?
I see keep seeing a repeated “mantra” for all stocks under 5 dollars, including “cent” stocks to have audit financials. Facts, not fiction or wishful opinions, say this is sheer nonsense for small companies. How about some reality here?

It’s true that, as Motley Fool columnist John Reeves puts it, “for every superstar stock out there, there are dozens of clunkers.”2 Careful investors are aware of the risks, and still want to take the chance.
But now, a law is robbing investors of their rights to place their money in stocks that carry risk but also have potential for great returns. This law’s prescriptive mandates are making it more difficult for companies of the size that Home Depot, or even Wal-Mart, were in 1982 to raise money in America’s public capital markets. Even if someone were to come back from the future to 2007 with stock market data through 2032, he just might come up empty-handed if looking for growth companies with the successful returns for investors of Wal-Mart and Home Depot.
Why? Because of the Sarbanes-Oxley Act of 2002. Substantial evidence shows that the law, which was intended to protect investors from corporate abuses, is hindering honest firms’ ability to raise capital and the average investor’s capacity to grow wealth. Enacted after major corporate scandals, the law increases penalties for fraud, but it also contains many mandates that unduly restrict legitimate entrepreneurs.
Section 404 forces auditors and executives to sign off not only on the accuracy of a company’s financial statements, but also on its “internal controls,” a vague term which the law does not define. 404 has turned out to be the law’s most costly provision, but contrary to some accounts, is far from the law’s only problem. In Section 301, Sarbox also mandates the one-size-fits-all requirements that only “independent” directors sit on companies’ audit committees, intruding on the cohesiveness and efficiency of different types of boards. And Section 201 prohibits a company’s auditor from performing any other services for the firm, which has caused costly duplication of many accounting tasks.3
As a result of these costly rules, it is highly unlikely that today a retailer in Home Depot’s position in 1982 would be able to afford the cost of going public. As Home Depot co- founder Bernie Marcus told Investor’s Business Daily last year: “I honestly don’t believe we could...start the Home Depot in today’s legal and regulatory climate.” He worries that today’s public companies “can’t make a decision without a lawyer on one side of you and an accountant on the other side.”4

http://cei.org/pdf/5954.pdf

Pretty straight forward analysis of whats been happening to small companies under Sarbanes Oxley. The Alternative Reporting Standard for OTC Companies makes perfect sense for development stage companies. When Medinah is ready to support the move to a higher exchange with revenues, then the company will have audited financials. Until then, such opinions calling for audited financials is nothing but nonsense, IMO.
Invested in the Mountain …
and That What Counts!