Expert On World Acceptance's Undisclosed SEC Investigation: 'This Is Not Going To End Well'
In a recent report, experts at Probes Reporter looked into World Acceptance Corp. (NASDAQ: WRLD), noting that management’s credibility has further eroded. The report revealed the company did not disclose an SEC investigation, which had recently been confirmed as ongoing.
This comes on top of a long-standing Consumer Financial Protection Bureau (CFPB) investigation.
“With the CFBP investigation presenting a very real challenge to the company’s fundamental business model, the added burden of dealing with an SEC investigation leaves management little time to focus on anything beyond the immediacy of responding to serious regulator scrutiny," the report said.
“Run fast, run far. This is not going to end well," it added.
While details of the investigation remain undisclosed, Probes Reporter said the probe likely relates to the conduct, transactions, and/or disclosures at the company.
The real zinger, though, is near the end of the report. "Given the controversy surrounding this company, we were shocked to see management elected to keep an SEC probe from investors. They easily could have disclosed it the same day the company announced the CFPB was recommending legal action," it said.
Latest Ratings for WRLD
|Nov 2016||BMO Capital||Downgrades||Market Perform||Underperform|
|Nov 2016||Stephens & Co.||Upgrades||Underweight||Equal-Weight|
|Nov 2016||Stephens & Co.||Initiates Coverage On||Underweight|
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