Two months back, I suggested that any long position in Syntax-Brillian (BRLC) was pure speculation, given how far behind the company is on updating its financials. With current 10-Qs behind at least six months, I said there just isn’t a reason to own a company that can’t get its bookkeeping straight - and the changes the company was making at the time weren’t material.

Boy, did I get a lesson in material changes.

First, Syntax-Brillian announced today that CEO James Li was taking a leave of absence to “address personal issues.” I had liked the kinds of things Li had been saying and doing since taking over - although the continued lack of tangible results was problematic.

More than just management changes were in the works today, however. Syntax-Brillian also said two members of its Board of Directors are resigning; Man Kit Chow and Christopher Liu were both (relatively) long-serving executives with the company.

With all of these departures, Syntax-Brillian has interim officers at several key positions - and while that in itself is troublesome, it’s all the more disconcerting that all of these seemingly-committed executives are leaving at the same time. This has to raise more questions about the financial state of the company, and since I continue to get stonewalled as to any indication of the presentation of up-to-date financials, this just serves as another black mark on the stock.

While some might look at the company as a below-book value play, without recent financials and the appropriate disclosures as to why Syntax-Brillian fell so far behind in its accounting, you simply can’t have any confidence in this company.

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