A Little Lie… And Its Consequences
On Wednesday, James Reindl, Chairman, Director and CEO of TechPrecision Corp. (TPCS) resigned. The press release stated: “Mr. Reindl submitted his resignation and confirmed that despite briefly attending the University of Delaware, he did not receive a degree from the University of Delaware as he had previously represented.”
When I visited the TPCS website, Mr. Reindl’s profile was already gone. However, as this is the internet age, his résumé can still be found on dozens of other websites.
Now I have to honest, and tell you that I had been following this Company for quite a while because it’s trading at a very attractive level. A P/E of only 2.40, a solid balance sheet with almost 6 million dollar in cash and a Price to Book of 1.04. TechPrecision manufactures metal fabricated and machined precision components and equipment mainly for the alternative energy, medical and nuclear sector.
Luckily, the stock price wasn’t impacted because of this news, so shareholders didn’t suffer. However it’s sad that this still happens. I’m sure, Mr. Reindl was a capable man, as the Company’s performance is there to prove it. But he shouldn’t have lied.
Although I have to hand it to Mr. Reindl that he was honest enough to admit in the press release what happened. The PR could have simple read: “He resigned for personal reasons.” Or did the rest of the board of TechPrecision insist that the truth would be published? I hope Mr. Reindl reads this post and is willing to comment on our blog.