Take a hard look @ what's happening with t.PSN....PSN 'fudged' their numbers....sound familiar?
Wow!!! From a high of $16.90 in the past year to its present 29 cents!! Wonder if the Long-Wave Wunderkid predicted this, lol?
FP says Poseidon a prime example of analysts bad advice
2013-02-11 07:13 ET - In the News
The Financial Post reports in its Saturday, Feb. 9, edition that analysts have a bad record picking winning stocks. The Post's Peter Hodson writes analysts provide good background information on companies and their competitors, and do some solid number crunching. Mr. Hodson says, however, that investors always need to remember that analysts are not really working for them. Research reports almost always end with a buy rating, notes Mr. Hodson. He says sell reports do not generate much trading traction, and are sure to annoy companies and the investment bankers trying to do deals. Thus, the strength of any buy rating should be diluted, says Mr. Hodson. A prime example is Poseidon Concepts. This company had lots of buy ratings less than five months ago, with target prices near $20. Now its shares trade for about $1.30 and the company is floundering. Mr. Hodson suggested a trade on this stock in the Post when it was worth $3.30 on Dec. 17, 2012. Mr. Hodson advises investors to read everything in a research report, other than the actual recommendation, and decide then whether it is a good company.
Poseidon mistakes up to $106-million in revenue
2013-02-14 06:59 ET - News Release
Mr. A. Scott Dawson reports
POSEIDON CONCEPTS CORP. PROVIDES UPDATE ON ITS BUSINESS, OPERATIONS AND THE REVIEW OF THE SPECIAL COMMITTEE
Poseidon Concepts Corp. has provided the following update with respect to the review and assessment being conducted by the company's special committee of the board of directors, and its business and operations.
Special committee review and assessment
As previously announced on Dec. 27, 2012, the company established the special committee to, among other things, review and address various issues arising from the company's write-off of certain of the company's accounts receivable and the evolving business plan of the company. In order to assist the special committee in its review, the special committee retained the services of Norton Rose Canada LLP as its legal counsel, which in turn has retained Ernst & Young Inc. Based on the recommendation of the special committee and the interim report of its advisers, the board of directors has determined, on a preliminary basis, that primarily related to long-term take-or-pay arrangements:
- Approximately $95-million to $106-million (subject to detailed quantification by the company) of the company's $148.1-million in revenue for the nine months ended Sept. 30, 2012, should not have been recorded as revenue in the company's financial statements.
- As a result of recording the foregoing revenues, approximately $94-million to $102-million (subject to detailed quantification by the company) of the company's $125.5-million accounts receivable as at Sept. 30, 2012, should not have been recorded in the company's financial statements as accounts receivable.
As a result of the foregoing, the first, second and third quarter 2012 financial statements will be restated and the company advises investors that they should no longer rely on the financial statements as well as the corresponding management's discussion and analysis. Further, the company advises that all previous guidance with respect to the company's business should no longer be relied upon. The board of directors, the audit committee and the special committee are working with their advisers, the company's auditors and management to more specifically quantify the extent and scope of the restatements required in the financial statements to ensure that revenue is recognized in accordance with the company's accounting policies and international financial reporting standards. Upon completion of these efforts, the company will refile the financial statements and accompanying management's discussion and analysis.
The special committee (along with its advisers) will continue with its review and assessment.
As of Feb. 13, 2013, Poseidon had 96 fluid tanks under rental agreements in the North American well completions market and seven tank heaters. These rentals are primarily short-term "live-tank" rentals -- a rental category in which the company has not historically experienced material collection or revenue recognition issues. The company is also focused on implementing plans to reduce operating costs through continued improvements to its set-up and tear-down processes.
We seek Safe Harbor.