MRE.TO - Martinrea

[sigis]

Has anyone looked Martinrea? The company is in a turmoil, first it was sued by the former vice chairman who accused the company's board of directors of breaking fiduciary obligations; then the company announced that it misreported earnings over the last 5 years in one of the plants. The stock is down more than 40% since September which is more than $400mm of its market cap. This seems a lot relative to the earnings misstatement (10-18mm) and potential litigation costs although of course this assumes that the news will not get worse than it currently is.

 

There is a good write up of the current situation at SeekingAlpha: http://seekingalpha.com/article/1912581-martinrea-international-inc-a-badly-beat-up-auto-parts-manufacturer-with-60-upside