NotableCalls - Zoltek's (ZOLT) CEO knows what about his company?

Via NotableCalls.com with the recap of watching Zoltek Companies (NASDAQ:ZOLT) shares drop 25% in the last 2 days.  Nice work CEO Zsolt Rumy.

As many of you know, ZOLT missed ests badly and guided down last night.

The stock was very weak already yesterday, in reaction to RBC Capital's wonderful call saying they were highly cautious holding shares into the qtr as the firm believed significant margin compression could lead to a 5-6 cent shortfall to Street estimate of 27c. Primary culprit was expected to be ~12-14% increase in raw material acrylonitrile (refined crude oil product) costs in the June qtr and inability for company to pass through price in its contract and spot market, representing 2-3% GM downside potential to Street estimate of 30.3%.

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The CEO's response to this, you ask?

Well, around 1:40 PM ET we had this cross over at Bloomie:

Zoltek's Rumy says co's fundamentals are 'good as ever' and says unsure how to respond to analysts' reports - Bloomberg

The stock recovered a full 1pt in reaction to this.

Hell, why not buy a stock down 15% when you have the CEO defending it ahead of results.

Right?

Nope. ZOLT's down another 17% today as it looks like business isn't as 'good as ever'

I know's there's RegFD but what about misleading investors like Mr. Rumy did?

My message to Mr. Rumy?

You ought to step down. Right now, right here. As if the problems with your CFO weren't enough!

Got it off my chest.

Thanks.

NC
 

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SOURCE: http://notablecalls.blogspot.com/2008/08/zoltek-nasdaqzolt-need-to-get-this-off.html