3SOF

David
Go to  WWW.bloomberg.com/specialreport/index.html

when you get there open Bloomberg.com:news and commentary

The 3rd and 4th articles are the ones that caused the drop. 2nd article is company's response

Hope this helps
Mike

Isn't the price action strange?  Shouldn't it go up?

Quote from: brandyjoco on December 15, 2005, 11:03:53 AM
Sorry, I never saw the orig story.  Supposedly, there was some deaths and the company covered up by threatening doportation to the internationals involved. The insiders have been buying up shares ever since and refuted it.

I think I found them:

1)Miami Test Center Lures Poor Immigrants as Human Guinea Pigs

2) Drug Industry Human Testing Masks Death, Injury, Compliant FDA

(this article is huge, I could only read half of it)

3) SFBC Says Review `Exonerates' Company, Cuts Forecast (Update3)

I just saw it 1reilly, thanks 

Quote from: brandyjoco on December 15, 2005, 11:39:13 AM
Isn't the price action strange? Shouldn't it go up?

I don't know if it is strange, maybe it has to do with this part: «SFBC earlier this month said it cut in half the number of beds at its Miami drug-testing center, the largest private clinical trials site in North America, after officials began probing the building's safety. SFBC agreed to remove 325 of a center's 675 beds in an agreement.»

Capacity cut in half? I don't know if it's because of this, I'll take a deeper look tomorrow morning.

Let me update you on the bed capacity issue. The company's HQ building which used to be an assisted living center experienced some structural problems during renovations. They will temporarily reduce the beds in use by 350 until this is fixed and move 120 to another facility. Workers accidently removed a support wall . They notified the building inspector and are working to correct the problem. Here's what causes me a problem. The reporter writes this as though it is the result of the probe. That's just not the truth. This guy's got an agenda. I go back to the fact that the company has been outfront with this issue aqnd every other issue. They reduced guidance and increased the share buyback program. I went long the stock when I posted and I will take my chances on this stock recovering most of that lost market cap. I will be interested to see how Sen Grassley responds to this Independent Investigators findings.

Here is the latest Bloomberg article:

http://www.bloomberg.com/specialreport/index.html

It may be why the stock is down.

On the conference call, there were some questions raised about the criminal background of the VP of legal affairs, who was the one who had pressured the illegal immigrants, as well as some other allegations.  Listen to the call at the company's web site for details. 

After those questions were raised, the stock sold sharply, creating a technical breakdown.  I'd avoid SFCC until they can clear up these qustions and the TA looks better.

I have to agree with Vikingfan on the timing of this one. I'm long but someone has a serious axe to grind here. The conference call was certainly attended by people asking questions with a purpose. The underlying fundamentals and the company's legal actions may not stem this current rush of negative news. I sure can't make a case for buying here with the current psychology, many investors just want to get away from situations like this. I must say in thirty some years I don't think I've listened to a conference call with this kind of tone. There's been alot of money lost.

I have tried to read what I could get my hands on about SFCC during the weekend, and couldn't find a good enough reason not to buy.

Got a small portion at 14.02.

Maybe it's a lotto, but I really do not see how those articles justifies the collossal drop in price.

We'll see.

Hmmmmmmmm....

House-cleaning, and the stock went up about 10%.


Press Release Source: SFBC International, Inc.

SFBC International Announces Employee and Board Member Resignations
Monday December 19, 10:50 am ET

MIAMI--(BUSINESS WIRE)--Dec. 19, 2005--SFBC International, Inc. (NASDAQ:SFCC - News), a provider of drug development services to branded pharmaceutical, biotechnology, generic drug and medical device companies, today announced that it has accepted the resignation of Jerry Seifer, effective immediately. Mr. Seifer has been a dedicated employee with SFBC for the past 10 years.


Separately, Leonard I. Weinstein, an outside member of SFBC's board of directors, has resigned for personal health reasons. As a consequence of this resignation, the board of directors currently consists of four employee directors and four independent directors. The Company is initiating a search to recruit a new independent board member to further expand the breadth and depth of the board of directors. In accordance with NASDAQ rules, the Company intends to add another independent director no later than the next Annual Meeting.

http://biz.yahoo.com/bw/051219/20051219005558.html?.v=1

News out with great pre-market surge.

SFBC oks shareholder rights plan with 15 pct trigger
Thu Dec 22, 2005 09:02 AM ET
NEW YORK, Dec 22 (Reuters) - SFBC International Inc. (SFCC.O: Quote, Profile, Research) said on Thursday its board approved a shareholder rights plan, which will be triggered in the event that a person or group becomes owner of 15 percent or more of the company's common stock.

The plan was not adopted in response to any hostile takeover attempt, the company said in a statement. The rights would entitle shareholders to buy one one-thousandth of a share of newly created preferred stock at an exercise price of $130.

The company also said that it has retained Lehman Brothers and UBS Investment Bank to act as joint financial advisors to explore strategic alternatives.

uc.

I had hoped for a bit more interest from the 3sof community on this one 

I bought at 14.02, and it is presently being traded at 16.45...+15.60% gain since dec. 19.

There is not much resistance that I can see, and hoping that Bloomberg has used all their journalistic ammunition, I have great hopes for SFCC! 

Yes, I bought 1000 shares today.  I have great hopes. One time I bought AHO when it had dropped to 3 from 14. It returned to 8 - about 50% back to the top. I am hoping SFCC will return. It began at about 45 and dropped to 14 - maybe 50% would be 29? Oh well, we don't know if another bad report (like maybe losing a good customer?) will make it go down again but it is worth a try.  I actually lost about 5000 when it dropped from$32 and another 5000 when it dropped the second time. I sure would like my money back but I am now being very conservative on my holdings. No Margin!

Brandyjoco and Cumulina
I've not posted on this stock since Dec 15th because I think this situation is loaded with danger. On Nov 30th I cautioned Brandyjoco that something was going on in this stock that was hard to understand. The stock was trading at 22. On Dec 2 when the stock had fallen into the 15 area I posted and said I had entered the stock for a long term position. I felt that the company was defending it's good name and that many of the questions had been answered. Boy was I wrong. The company lowered guidance and the negative news flow continued. The conference call was one of the most negative I have ever heard. I felt that more  posting could lead members into a very dangerous downtrend. I did add to this stock on Dec 16th at 13.40 and I do think it can rally to the upper Bollinger band around 22.
However, This stock is not for the light hearted. I can tell you that a powerful hedge fund, run by David Loeb, is said to be attacking this stock. In the current environment, with so many questions about this company, this kind of attention from a large hedge fund can do real damage to the price of a stock. He may actually have this stock right and the value of this company may still be too high. I think you have to look at this current rally as a dead cat year end bounce. I say this because I don't think the negatives are just going away. Be very nimble with this one. I can not support my long in this stock from a fundamental view and as a consequence I will trade this position rather then hold it. I think value investors have been taken to the woodshed and won't be back until they see some concrete quarters from this company. All this commentary is my humble opinion. I hope your trades lead to profits.

Thank you for your post, 1reilly.

I am aware of the danger from David Loeb, and you might be right in thinking that this latest ralley is a "dead cat year-end bounce".

I'm trying to read all I can regarding SFCC - especially what happened since early november.
Also reading the yahoo message-board, as disgusting as it can be at times.

I'm keeping a very close eye on it, and will not hesitate to jump out again if there is another attack of some sort.
It looks to me like the attacks have come with 2 weeks interval - so we should be due for another one very soon. ...If it comes...!

So far I'm up about 18% with SFCC.

Thanks again for your warning.

Merry Christmas and a prosperous New Year to you.

I never even thought about going to the Yahoo board on this one. I can only imagine what that board must sound like. I have been talking to a couple of Mutual Fund managers that used to be clients of mine . They are so disgusted with what has happened to this company. This company was just humming along and then bang these articles hit the press. Now guidance is lowered and their hiring brokers to look at strategic options. Wow!  I was never worried about you and Brandyjoco understanding what this trade was all about but I do worry about posting stuff on the non-members board .
You have a Merry Christmas and a Happy New year also.