WASHINGTON, Feb. 5, 2001 (PRIMEZONE) -- Financial irregularities are emerging daily. The Securities Sleuth, http://www.securitiessleuth.com, keeps its readers up-to-date by looking "behind the scenes" to see how the 'irregularities' took place and gauge their long-term impact on investors. Today the Sleuth takes a look at Regeneration Technologies, Inc. (Nasdaq:RTIX) and Enterasys Networks (NYSE:ETS).
On February 1, RTIX made a stunning announcement, signaling accounting irregularities involving several of its senior executives. The stock then lost more than 50% of its value in the following ten minutes, before Nasdaq halted trading. The Company's announcement included the departure of key employees, delayed earning results and inventory problems.
ETS made a not dissimilar announcement late on Friday, February 4, after Wall Street had gone home for the weekend. On Monday morning, it lost more than 60% of its value at the opening of the market. ETS' investors were faced with two jolts: first, a delay in the release of financials because of a need to review a sales contract in its Asia region; second, the Company announced that the SEC had ordered an investigation relating to the Company and certain affiliated companies.
More about these two stories, and an update on PNC, can be found on the Sleuth's web site, at www.securitiessleuth.com.