Replies to post #210 on United Development Funding IV fka UDFI

[Enterprising Investor]

Material events would have to reported in the interim.

[Phaedrus77]

I was thinking more along technical lines. Would/could an auditor sign off on financials without knowing whether the SEC will charge UDFI with fraud?

Unless they are planning on restating financials for many years (I don’t think they’ve issued a notice that previously filed financials cannot be relied upon...so I don’t think that’s the case), I’ve got to believe the actual financials are done. This is only a $500 million company.

[Jh5142]

It's really hard to understand why it is taking so long to file financials.

I believe that the SEC and FBI can't prevent a company from publishing their financials. So, it must be a delay due to UDF's decision- maybe the audit isn't finished, and maybe they are blaming the audit as a reason why they don't want to publish yet. I would think that if there was real value they'd want to share that news.

But who knows. I am long the stock, and will find it hard to believe if the value of the portfolio is less than $8 per share given how strong the residential land market has been. But anything is possible at this point.