Stock Strike Down, Sign of a Crisis... Oh its the company I used to work for.

American Addiction Centers (AAC) has been the giant of the addiction treatment industry. For profit, and even provides stocks now. 

But interesting when they get news like:

American Addiction Centers: Addicted To Fraudulent Drug Testing? (Mar. 3, 2015,  http://seekingalpha.com/article/2967976-american-addiction-centers-addicted-to-fraudulent-drug-testing)

Then,

IPO Lockup Expiration: AAC Holdings (Mar. 31, 2015,  http://seekingalpha.com/article/3011226-ipo-lockup-expiration-aac-holdings)

I did not know but their stock was locked up for 180-day until Mar. 31, 2015.

Well the crisis of FBI raiding Florida's addiction centers for fraudulent activity of over using drug test and Blue Cross Blue Shield suing AAC for fraud probably will not help the stock price from dropping.

I sent e-mails to the owner, president, and business development head as if the stock price has shattered and they need a crisis management from us.

The e-mail is as if it already happened but hopefully they get the picture.  Since they haven't done much informing shareholders and customers about the suing and moreover there are multiple cases of errors (http://www.ripoffreport.com/r/american-addiction-center/west-palm-beach-florida-33407/american-addiction-center-aka-singer-island-facility-abruptly-closing-of-out-patient-faci-1064005) and is a scary position to be.

I will respect the confidentiality and not state specifically what I've seen inside, but lets say the morale of the staff were very low.  It began high, but it just became low over time (http://www.glassdoor.com/Reviews/American-Addiction-Centers-Reviews-E656512.htm).  I don't even know if job situation is great for the chief executive positions which are getting paid more.  Usually, the abusiveness are seen in lower paid staff, but I never saw the "cheifs" to be happy, fulfilled, or confident really in AAC. I guess it is true that money makes you not dissatisfied but doesn't make you satisfied.

The following will be what I will recommend for as they get closer to the expiration of the lock-up.

1) Individuals in higher position be honest about the mistakes they made to the public, shareholders, and customers and give specific plans to correct it.

2) Review the crisis management plan and the team who will be responsible for it. Follow up with quality management group after the crisis is resolved.

3) Communicate with all staffs about the current condition of the company, honestly and remove doubts. Make sure the company states about the value they provide to quantity of individuals which is true for having so many beds.

AAC stock price currently is $28.79 lets see what happens.  It may not go down immediately if they force the current shareholders not to sell it.  I don't know even if that is possible.

It is either they go below $23.94 where there support were or have a way to go beyond about $31.57 which was their resistance.  The challenge is faced for AAC as their chart is currently at neutral, you can say its up, you can say its down. Will see what happens on March 31st, 2015.