Capmark Financial Group Inc. (OTCMKTS:BGRP) Gets A Correction
Capmark Financial Group Inc. (OTCMKTS:BGRP) had a nasty stumble as soon as it published its newest press release – and with good reason.
The PR hit the web about a minute after the close of Monday’s session, so its effect on BGRP‘s chart position was postponed by a couple of hours, but it was clear from the moment investors saw it that it will have a profound influence on the company’s price per share.
After all, it contained some pretty disturbing figures:
- Cash and cash equivalents – $ 163.5million
- Total current liabilities – $336.4 million
- Total current assets – $537.1 million
- Quarterly sales – $301 million
- Operating loss – $5 million
- Net loss – $13.7 million
These figures are unaudited, but it’s reasonable to assume that they would probably be accurate. Judging by the company’s own commentary, the period in question is a lot worse than the one that preceded it – which is obviously not good news, and it should be obvious how that fact alone could be responsible for BGRP‘s stumble. However, there is a more serious issue here.
The fact of the matter is that potential investors and BGRP shareholders alike have no other choice but to rely on the picture the aforementioned press release painted. This is because, sad as that may be, there’s no other source of information on-line for investors to do their due diligence.
Suffice it to say that the last entry on BGRP‘s OTC Markets profile’s filings and disclosure section was received on Feb 11, 2014. The company’s latest 10-Q was published on May 15, 2009.
At this point it should be clear to seasoned OTC Markets investors that the red “STOP” sign stamped on BGRP is well earned. Although the company appears operational and may come out of its financial struggles yet, its negligence in reporting speaks volumes in and of itself.
Investors should take these facts into account and act with the care and caution that is well due in similar situations.
