The day ended in a bit of a downer for me. It was all due to CMED. They had a press release which has to hold the record for the longest title ever: (China Medical Technologies Announces the Substantial Completion of an Independent Internal Investigation and Expected Timing of Reporting of Unaudited Financial Results for the Quarter and Fiscal Year ended March 31, 2009 and the Quarter en).
This came out mid-day and I skimmed it quickly, but didn't think much of it as it basically said the investigation found no wrong-doing. Then the stock tumbled down about 15%. After that I read the release a little closer. Here is the sentence that caused the problem:
During the course of this independent internal investigation, the senior management team and certain management personnel devoted significant time and efforts to assist with the investigation, and had less time to spend on the Company's operations. The Company believes that this has contributed to a decline in the Company's sales in June 2009 and this decline has continued in July. The Company's preliminary estimate of revenues for the quarter ended June 30, 2009 is approximately Rmb210 million, subject to normal book closing and adjustment procedures. In addition, the costs of this independent internal investigation have increased the Company's general and administrative expenses substantially for the quarter ended June 30, 2009 and will also increase the general and administrative expenses for the quarter ending September 30, 2009.
I don't know what my gentle readers think, but it sounds like a serious cop-out to me. Either that was the most expensive anonymous letter ever, or things are not going as well as they expected.
Oh well, can't have good news all the time.
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