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Insurance and Company indemnities does NOT cover fraud and wilful misconduct or criminal breaches. Directors in breach can be sued personally.

ASIC has an obligation to investigate Elmo and the board, if certain allegations made against them are proven then it is going to be litigation BIG time.

Wild speculations have already begin to circulate about their Sale and Profit numbers. I repeat "wild speculations" at this stage. It is a common practise to dress up sales and profit numbers by consigning stock to retailers, it is speculated that retail chemists have been induced to stock up on their products and given 180 days to pay. IF this is true then how did SIP treat this practise. Is the goods on consignment treated as inventory which does not inflate profit or has this been treated as a sale which inflates profit.

I believe that their audit report is also heavily qualified and raised doubts to their going concern ability. 45 cents may look a bargain right now but the full facts are only just starting to emerge.

It took 5 weeks of "discussions" with their auditors and bankers before they released their accounts. Historically, when this happens - the company does not survive. Time will tell with SIP. Is this company undervalued at 45 cents? You make up your own mind. For me I am now only a poorer spectator.

<blockquote data-quote="vincent191" data-source="post: 544794" data-attributes="member: 23541">Insurance and Company indemnities does NOT cover fraud and wilful misconduct or criminal breaches. Directors in breach can be sued personally.ASIC has an obligation to investigate Elmo and the board, if certain allegations made against them are proven then it is going to be litigation BIG time.Wild speculations have already begin to circulate about their Sale and Profit numbers. I repeat &quot;wild speculations&quot; at this stage. It is a common practise to dress up sales and profit numbers by consigning stock to retailers, it is speculated that retail chemists have been induced to stock up on their products and given 180 days to pay. IF this is true then how did SIP treat this practise. Is the goods on consignment treated as inventory which does not inflate profit or has this been treated as a sale which inflates profit.I believe that their audit report is also heavily qualified and raised doubts to their going concern ability. 45 cents may look a bargain right now but the full facts are only just starting to emerge. It took 5 weeks of &quot;discussions&quot; with their auditors and bankers before they released their accounts. Historically, when this happens - the company does not survive. Time will tell with SIP.&nbsp; Is this company undervalued at 45 cents?&nbsp; You make up your own mind. For me I am now only a poorer spectator.</blockquote>

[QUOTE="vincent191, post: 544794, member: 23541"] Insurance and Company indemnities does NOT cover fraud and wilful misconduct or criminal breaches. Directors in breach can be sued personally. ASIC has an obligation to investigate Elmo and the board, if certain allegations made against them are proven then it is going to be litigation BIG time. Wild speculations have already begin to circulate about their Sale and Profit numbers. I repeat "wild speculations" at this stage. It is a common practise to dress up sales and profit numbers by consigning stock to retailers, it is speculated that retail chemists have been induced to stock up on their products and given 180 days to pay. IF this is true then how did SIP treat this practise. Is the goods on consignment treated as inventory which does not inflate profit or has this been treated as a sale which inflates profit. I believe that their audit report is also heavily qualified and raised doubts to their going concern ability. 45 cents may look a bargain right now but the full facts are only just starting to emerge. It took 5 weeks of "discussions" with their auditors and bankers before they released their accounts. Historically, when this happens - the company does not survive. Time will tell with SIP. Is this company undervalued at 45 cents? You make up your own mind. For me I am now only a poorer spectator. [/QUOTE]

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