Apple Inc. (AAPL), Cirrus Logic, Inc. (CRUS): Why Did My Stock Just Die?

Management essentially said, “Trust us, we already know about that stuff and are working on it. You don’t need more information to review it.” They also said they have plenty of money to meet its debt covenant, and its reserves, and its other estimates are accurate, too.

Oh, OK. Investors are supposed to take management’s word for it when their auditor raises potential yellow flags and then gets fired for doing so? Maybe there’s nothing wrong with Magnum’s numbers, but why wouldn’t you work amicably with your auditor instead of giving them the boot? The stock might have fallen 15% yesterday, actually having recovered from the worst of the news when it lost nearly 30% of its value, but I have to question why investors would hang around anyway, and I expect we’ll see it drop further.

The article Why Did My Stock Just Die? originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Apple and Goldman Sachs. The Motley Fool owns shares of Apple, Bank of America, Cirrus Logic, Citigroup, JPMorgan Chase, and TriQuint Semiconductor.

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