Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I wanted to poll the rest of the short selling community to see what everyone thought of TNSI. They got a CFRA alert this month, which means there are accounting discrepencies that could lead to a substantial fall in stock price.

Specifically, TNSI has been loaning money to customers in exchange for the customers agreement to purchase a particular amount of goods or services. They then book this as a long-term investment, instead of accounts receivables. Secondly, they reclassified receivables as a long-term investment, then recounted the repayment of that "investment" as revenue.

Over the past 2 quarters, receivables (not counting their "long-term investments") have surged, with days sales outstanding going from a consistent 55 days to 62 days in Q1 and 65 days in Q2.

Lastly, there has been a big jump in "Soft" assets, which usually indicates a low quality of earnings.

Any thoughts?

Kevin Prigel
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.