Wednesday, August 09, 2006
BakBone Software (BKBO) update
There's also an 8-K issued which includes the July 27 open letter to shareholders which I covered here.
It's easy to dismiss accounting issues and focus on increasing business and successes, but that's a recipe for disaster. These issues are important and could have significant impact on the value of the business. It reminds me of a section in the autobiography of John D. Rockefeller where Rockefeller is buying up oil refiners in the early days of the oil industry. He found that the refiners didn't have any grasp of how much money they were really making because they didn't understand a lot of accounting concepts. A lot of them were really losing money despite near term solid cash flow.
BakBone needs to get these issues sorted out in order to have a clear picture of what's going on within the business. That's a scary thing, but I'm invested just the same.