This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dumbest Things on Wall Street This Week: March 22

Stocks in this article: LULU GLDD JPM MXWL

2. Maxwell Not-So-Smart

Bang! Bang! Maxwell Technologies (MXWL) is once again dropping the hammer on shareholders.

The energy storage device maker announced the resignation of its public accounting firm McGladrey LLP in an SEC filing Tuesday. In its farewell letter to Maxwell's audit committee, McGladrey confirmed "it could no longer rely on management's representations," nor the "information obtained directly from certain third parties." Maxwell added it will be forced to delay the reporting of its 2012 financials while it looks for an accountant to replace McGladrey. Shares of the company sank 14% to $6.40 on the news.

No, all is not well at Maxwell, so much so that its accountant is throwing in the towel. Not that McGladrey had a clue as to what was going on at the company anyway. To tell the truth (which nobody did at the company), McGladrey was probably plenty glad to get out of there. Furthermore, we doubt they will be the last to go since they are following a host of other Maxwell employees, including the company's senior vice president of sales and marketing, out the door.

Of course, McGladrey or no McGladrey, nobody expected the company to release its 2012 numbers for a long, long time anyway. In case you forgot, the company said earlier this month that it needs to restate its 2010 and 2011 financial results due to revenue recognition errors, so even the thought of closing last year's books was ridiculous. Maxwell said at the time that it expects the restatement will decrease its fiscal 2011 top-line by $6.5 million and revenue during the first three quarters of 2012 by $5.5 million by comparison to its previously stated results.

Then again, nobody knows how the numbers will add up once the next auditor digs into Maxwell's accounting mess. The only thing we can count on is that Wall Street's pencil-pushers will probably be as clueless as ever about the stock.

Back in early February, analysts at both Piper Jaffray and Stephens upgraded Maxwell to "overweight" from "neutral" based on the company's improving China outlook and supposedly improved fundamentals. The shares popped to nearly $11 on the upgrades, a year-to-date high for the stock and nearly double its recent price.

Clang! Clang!

4 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs