I wouldn't hold this any longer than I needed to get the sell order processed. When an accounting firm resigns as auditor there's usually a good reason... good for the accounting firm, bad for investors. On the other hand, there is no guarantee that it will become totally worthless, and even if it did, $3 or $4/share is still $3 or $4 more than $0/share.
Ira Smilovitz
In a message dated 12/19/03 1:15:02 PM Eastern Standard Time, caracarn@bivio.com writes:
Our club holds a stock, Dynacq Healthcare (DYII), that has
been slowly getting negative news of late. This had been a
darling find of ours having gone from our purchase price of
$13 per share to nearly $26 in less than 3 months. At that
time we looked at an new SSG and decided the stock was still
a good value and held on. Through the negative reports and
the recent annoncement by E&Y that they are withdrawing as
auditors since the company lacks the internal controls to
produce accurate financial statements two days ago, the
stock has plummeted to $8.95 yesterday. After the close of
the market our club decided to cut our losses and sell. I
tried to execute the order this morning only to find that
the NASDAQ is looking at delisting, and the SEC is
informally investigating them. The stock now has a new
symbol DYIIE during the investigation and is selling at
$4.40 and falling.
My question is, has anyone gone through anything like this
with one of their stocks? At this time we have decided the
damage is done and to ride this one out, but I'm just
curious as to whether we should expect a worhtless stock at
the end of this or what.