AviaLaf
01-22-2016,
Jae wrote about NUIN awhile ago in his newsletter as a potential value play.
It's a Chinese [scary] supplement company with reported net cash position of $125.46 million, and a market cap of $5.3 million. Jae concluded that the market cap valuation could be due to speculation of fraud.
Since Jae's email, I've been watching the stock, curious to see where it would go. Today, the first market day after the company filed an 8-k with the SEC, the stock plunged from a $10 million market cap to today's $5.3. Because I'm not super versed in legalese, I'm having trouble understanding why the statement could result in such a plunge. Can any readers help me understand?
An 8-k, filed on 11/20 seems to be saying the following:
The company couldn't access its liquid assets because the CEO wouldn't allow access.
In order to pay off debt, the company borrowed $180k cash from the CFO and Richard Fearon in exchange for stock.
The board intends to replace the CEO.
The company hasn't yet released their Q3 10-Q.
What am I not reading between the lines? I'm missing something big here; but why did these events trigger a sell-off?
It's a Chinese [scary] supplement company with reported net cash position of $125.46 million, and a market cap of $5.3 million. Jae concluded that the market cap valuation could be due to speculation of fraud.
Since Jae's email, I've been watching the stock, curious to see where it would go. Today, the first market day after the company filed an 8-k with the SEC, the stock plunged from a $10 million market cap to today's $5.3. Because I'm not super versed in legalese, I'm having trouble understanding why the statement could result in such a plunge. Can any readers help me understand?
An 8-k, filed on 11/20 seems to be saying the following:
The company couldn't access its liquid assets because the CEO wouldn't allow access.
In order to pay off debt, the company borrowed $180k cash from the CFO and Richard Fearon in exchange for stock.
The board intends to replace the CEO.
The company hasn't yet released their Q3 10-Q.
What am I not reading between the lines? I'm missing something big here; but why did these events trigger a sell-off?