#FridayNightDump , The Best Time to Hide

When Markets close on Friday nearly every market participant from brokers, analysts, investors, money managers and even the media flee their terminals and turn their attention to their personal lives until they boot up again on Monday morning. Monday is when everyone logs back on gets plugged back into the market pulse and are bombarded with the latest news of the morning.

Experienced management from public companies that are very crafty and slick who wish to hide SEC disclosure file any unfavorable news on Friday Nights when everyone is away knowing that when the new week starts, last week's news is buried. Michelle Leder of @Footnoted coined Friday Night Filings as the #FridayNightDump



Journal of Accounting and Economics published research by professors from Cornell University and Simon Fraser University unveiling statistics of Friday Night Filers.

"Abstract

Using combinations of weekdays and times of day (before, during, and after trading hours) of earnings announcements, we examine whether managers attempt to strategically time these announcements. We document that the worst earnings news is announced on Friday evening and find robust evidence that only Friday evening announcements represent managers’ rational opportunistic behavior. Friday evening announcements are followed by insider trading in the direction of earnings news and the largest post-earnings announcement drift. Managers also attempt to reduce interaction with investors and hide more than just earnings news by announcing on Friday evening. We find that Friday evening announcements occur later in the evening than announcements on other evenings, firms have a reduced propensity to hold conference calls, and major firm restructuring events are relatively more likely to occur after Friday evening announcements."

Michelle Leder of *Footnoted is one of the best follows on all

of Twitter. Every Friday night she posts about public 

companies who sneak in SEC filings before the 

weekend,.... sometimes to simply avoid being noticed. 

July 10,2015 report: 

When is the Best Time to Hide Earnings News?

Tweets by @footnoted

Titan Machinery Q2 Net Income Of $6,000 Increases Market Capitalization By $40 Million

Titan Machinery (NASDAQ: TITN) reportedFY 2016 2nd quarter financials yesterday morning premarket and shares skyrocketed up 20% for the day closing @ $12.39. ($261 million market capitalization).

Fundamental Highlights (including Archives):

• 9/9/15 Sales Decline 25%
• 9/4/15 Keep Your Eyes on the Numbers
• 9/2/15 Closes at New 70 month low
• 9/1/15 Estimates Range
• 8/28/15 New 66 month Low
• 8/20/15 Playbook: Long Gold, Short Titan,Apple,Stratasys

• 6/9/15 10Q Reveals Errors: Inflated Assets/Understated Losses
• 6/9/15 Founder Jumps Out As President With Golden Parachute
• 6/3/15 Shareholders Asked to Give Proxy Vote to Non Director
• 5/29/15 CoFounder Suddenly Resigns as President
• 5/29/15 Local MN Brokerage Upgrade Creates ShortSqueeze
• 5/27/15 History of Underwritings and Related Party Transactions
• 5/27/15 Hyped Guidance, Misses FY2015 by over $2.00 EPS est
• 5/21/15 Will SEC Comment Again?
• 5/17/2015 Chairman's Speculation Sends Bonds Up 21%
• 5/12/2015 Two Directors Suddenly Resign After $31 million loss

• 4/15/15 FY2015 10K : ($1.51) loss
• 4/9/15 A Warning Cut in Half
• 3/13/15 Bond Makes All Time Low
• 3/9/15 Titan Shares HALTED
• 2/12/15 Unusual Volume with No News, ....again
• 1/14/15 Negative $500 Million Negative Cash Flow

• 12/10/14 Q3 Report

• 4/25/2013 MOST OVERPRICED STOCK IN THE MARKET (leads the league in related party transactions)

What the Pros say about Equities Research

Titan Machinery Closes at New 70 Month Low

Titan Machinery (NASDAQ: TITN) closed at a new 70 month low yesterday @ $10.88 after reaching a new multi intra day low of $10.68.

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IN 2014 $TITN Inflated Assets and Understated Losses and touted those wrong numbers on CC to Squeeze Shorts http://t.co/874rZdx9BW

— tom renna (@StockPicker908) September 2, 2015

In 2013, #SEC commented on 3 different $TITN filings. This years DEF14A filed in May is example of how they do things http://t.co/QquggQTHbx

— tom renna (@StockPicker908) September 2, 2015

Will these other 2 unusual trading activity days before news be scrutinized now that it appears $titn is doomed http://t.co/Mo1LDseDyK

— tom renna (@StockPicker908) September 2, 2015

Anyone else recall the day in March 2015 when $titn was down 6% and then after the close they pre-announced warning? http://t.co/T1NniGWCyr

— tom renna (@StockPicker908) September 2, 2015

the last time $titn closed below $11.00 was November 17,2009 @ $10.98

— tom renna (@StockPicker908) September 1, 2015

Last time $TITN closed below $10 was April 23,2009 when it closed @ $9.88.. Last time the stock closed below $9 was on March 31,2009 @ $8.98

— tom renna (@StockPicker908) September 1, 2015

Hats off to @StockPicker908 for sticking w/his warnings on $TITN all the way down http://t.co/NMAM2lzW9c

— Herb Greenberg (@herbgreenberg) September 9, 2014

Congrats to a pair of determined stock sleuths: @adakcapital & their call on $CCRN and @StockPicker908 for his long-running work on $TITN

— Roddy Boyd (@BoydRoddy) March 10, 2015

From time to time I'm asked about analysts, diggers whose work I really respect, who do things well. Tom Renna, @GFNNstock, is a must follow

— Roddy Boyd (@BoydRoddy) September 7, 2013

Titan Machinery 10Q Reveals ERRORS

Inflated Assets and Understated Losses  
Does This Explain Why Co-Founder/President Suddenly Resigned?

Titan Machinery filed FY2016 1st quarter 10Q with the Securities and Exchange Commission for the period ending April 30,2015. Included in the footnotes was the severance agreement with the CoFounder of the company who suddenly resigned from the board and stepped down from his role as president effective last week on June 4,2015. (The company has still not named a new president and I am confused why the president would elect to resign before allowing the company to find a replacement?)

Sudden Resignation Has A Hostile Feel 

From severance agreement:

"The Company may terminate this Agreement without Cause"

In June 2014, Titanannounced FY2015 1st quarter financials and shares traded up above $17.00 per share. (its 52 week high).
.
Titan announced that Construction Revenue in the 1st Quarter FY 2015 were 23% higher vs. Q1 FY2014 and the chairman David Meyer also touted on the conference call how they created a footprint in the Ukraine with a new location and made the statement: "Ukraine has been excellent that we’re seeing good real order sales,"

In September 2014 the Company announced that 

·                Management Disclosed ERRORS made in 1st Quarter 10Q

• In their FY2015 2nd quarter 10Q filed on Tuesday afternoon with the Securities and Exchange Commission the company stated that they realized that they had inflated their assets and understated their losses in their 1st quarter 10Q filed back in June 2014. Although they previously reported an Earnings Per LOSS of ($0.20) for Q1, it came to their attention that had actually loss ($0.31) for the quarter. The company determined that the error on the loss of over 50% was immaterial and that they won't deem it necessary to Refile their FY2015 Q1 10Q.

Because the company never refiled a FY2015 Q1 the public was never able to see the financials for FY2015 Q1 until today when the company filed their FY2016 1st quarter 10Q.

• Reality was Construction Revenue touted as being 23% higher in June 2014 press release were only 10% higher than prior year's Q1.
• Agriculture revenue were over 4% lower and not the -2% they stated.
• International Revenue were actually only 5% higher and not 9%.

June 2014 Press Release with Inflated Assets and Understated Losses That SQUEEZED the SHORTSELLERS!

**more 2014 hype TITAN MISSED FY2015 EPS GUIDANCE BY $62 Million (missed guidance for 7 months out by $2.00 a share)

**** Will Securities and Exchange Commission Comment On Another Titan Proxy?

 *TITAN BONDS UP 21% After 6th Amendment

Below are Images from the FY2015 Q1 10Q that were filed with SEC last June 2014.    
In Red I mark some errors and discrepancies against today's numbers for that same 1st quarter of a year ago.

Calling ALL CPAs and Auditors
this image here is the biggest problem I see. BENEFIT FROM INCOME TAXES
Here in the Q1 2015 10Q it shows a Positive $1,733,000
IN Red you can see the Q1 2015 Number that is used in today's FY2016 Q1 10Q showing that number as NEGATIVE ($1,733,000).
I don't understand how last year they added that number when it was entered as positive, but this year they add that same number but they enter it as a negative. #CONFUSED