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No one likes to hear that a company in their portfolio may restate
and that's why the market has reacted negatively to Thor
Industries, Inc. (THO). The Company engages in the manufacture
and sale of recreational vehicles, and small and mid-size buses
in the United States and Canada. At the end of the trading day
on January 29, 2007, the Company announced that it may need
to restate its financial statements going back to 2004. Specifically,
the Company disclosed that both its audit committee and
independent outside advisers are investigating a subsidiary's
inventory, accounts payable and cost of goods sold. Not surprisingly,
the market has reacted very negatively to these disclosures. We
are investigating this matter and it appears that investors who
purchased THO stock between December 1, 2003 and
January 29, 2007, are affected.
Trouble for Hornbeck (HOS) Shareholders
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Hornbeck Offshore Services, Inc. (HOS) provides offshore supply
vessels (OSV) for the offshore oil and gas industry in the United
States, Gulf of Mexico and internationally.
It has been alleged that while the Louisiana-based Company
painted a glowing future and sold $220 million in convertible senior
notes, its future wasn't nearly as bright. As is the usual case, when
the true condition of the Company began to emerge, its stock
dropped precipitously. Specifically, on January 10, 2007, Hornbeck
lowered its 4Q:06 earnings guidance from between $0.72 to $0.77
per share to between $0.61 and $0.63 per share. The Company
attributed this guidance revision to, among other things, volatile
market conditions for offshore supply vessels in the Gulf of Mexico,
shipyard delays and unscheduled repairs, and increased operating
costs. It stock dropped over 20% on this news. Investors who
purchased HOS between November 1, 2006 and January 10, 2007,
are affected.
LECG Corporation (XPRT) May Need Their Own Expert
LECG Corporation (XPRT) and its wholly owned subsidiary,
LECG, LLC provides expert services, including economic and
financial analysis, expert testimony, litigation support, and strategic
management consulting to a range of public and private
enterprises. Perhaps, after their January 25, 2007 announcement
regarding their preliminary estimates of Fourth Quarter and
Full Year 2006 results, the Company may need to use some of
their financial expertise internally. Specifically, the Company indicated
that it would miss its previously reported guidance for the fourth
quarter by approximately 40-48%. More troubling, the Company
announced that it had "discovered errors in its previously issued
2005 annual and 2006 quarterly financial statements in connection
with certain specific expert compensation model calculations."
It appears that investors who purchased stock from February 28, 2006
to January 25, 2007, are affected.
Tough weeks for Coast Financial Holdings (CFHI) Shareholders
The last two weeks have been very tough for Coast Financial
Holdings, Inc. (CFHI) shareholders. The Company operates as
the holding company for Coast Bank of Florida that provides various
consumer and commercial banking services to individuals and small
to medium sized businesses in Manatee, Pinellas, and Sarasota
counties in Florida.
The bad news started on January 19, 2007, after the close of the
market, when the Company disclosed in an SEC filing that it had
made $110 million in loans to 482 borrowers whose homes were being
built by a single developer that had "ceased construction activities"
and is experiencing "financial difficulty". The amount of the loans
involved probably represent about 20% of the bank's loan portfolio
and the Company indicated that these circumstances are "reasonably
likely to have a material adverse impact on the bank's loan portfolio"
and the bank's audit committee would be conducting a review. This
announcement resulted in a drop of approximately 25% the next
trading day on heavier than usual volume. More bad news would
follow. On January 22, 2007, CFHI shares declined an additional 28%,
after the bank disclosed additional details about its loan program.
Finally, on January 24, 2007, the bank's stock dropped another 14%
after it announced the Board of Directors had engaged Sandler
O'Neill & Partners, L.P. to advise on the financial aspects of the
Company's review of its strategic options.
We are investigating these cases and if you are an affected investor
in any of them, or in Sunrise Senior Living (SRZ) or Celestica (CLS)
(which were discussed last week), you may wish to contact us
at info@securitiessleuth.com or 877.511.4717.
Now with respect to securities cases that have recently settled. If
you are an affected investor - you purchased any of these stocks
during the relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember, if you
don't submit your claim form, you won't receive your share of
any settlement.
Wilbros Group, Inc. (WG)
Class Period: May 6, 2002 to May 16, 2005
Claims Deadline: February 28, 2007
Claims Administrator: Garden City
Krispy Crème Doughnuts (KKD)
Class Period: March 8, 2001 to April 18, 2005
Claims Deadline: March 5, 2007
Claims Administrator: Gilardi
Information regarding other recent settled cases, including the cases
listed below can be found at www.securitiessleuth.com.
Adelphia Communications (ADELQ)
Advanced Neuromodulation Systems, Inc. (ANSI)
Amerigroup Corp. (AGP)
Philip Services Corp. (PHV)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're encouraged
to contribute to the Sleuth by giving your own tip-offs at
www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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