I think this situation will be a hard one to ascertain exact “facts” for.  If I owned it,  I’d be very interested to see how it ended up being accounted for in the financial statements.  Do they accrue liabilities that show up on the financial statements or is everything covered in footnotes?  How are they making the estimates they are using if they are accruing liabilities?  I think it will be very difficult for probably even experts to judge the validity of the assumptions that are made and the estimates that are produced.

There’s certainly a lot of finger pointing already going on.  If it were me,  I’d write off this company as an investment because it will be just too difficult to make any judgments on too many factors that might impact their earnings this year and I imagine for quite some time in the future.

Laurie Frederiksen

www.bivio.com