Founder of muddy water block: now
investment in stock is still not safe
Known as the sniper will share in the muddy waters of the founder Carson Block (Carson Block), said on Wednesday that the accounting scandal caused investors rushed to flee away from Chinese stocks.After just a few short years, if the investors in the current thought now buying us-listed Chinese stocks are safe, that this idea is self-deception.
Brock said, "after we enter 2013, investors seem to have forgotten the lessons of 2011."As muddy waters, the founder of the bullock for more than two years before shorting Chinese forestry company
sino-forest international co., LTD (Sino - Forest), said its alleged financial fraud, and force on the Toronto stock exchange delist the company in the investment community.
Bullock, then took a Chinese company.Released in October 24, a 81 - page report, muddy waters accused of beijing-based mobile phone security firm net qin (nyse stock code: NQ) for questioning.Muddy water points out, "qin said the net, China security market revenue in 2012, at least 72% is fake."Muddy waters that qin exaggerated paying users, and is expected to net of the qin dynasty China pay with fewer than 250000 users, rather than the network of the qin dynasty claimed 6 million people.The day in the muddy waters report net qin American depositary receipts of the closing price of $22.88, but in muddy water, net of the qin dynasty's American depositary receipts are worthless.
Qin said in a statement later, muddy waters for qin accused of misrepresentation, this report is to denigrate qin, intentionally mislead investors, in order to achieve its capital profit of malicious behaviour.Net Lin Yu, chief executive of the qin dynasty (weibo) also said that the company account of more than $300 million in cash at the moment.But since the nets qin report, the company's share price fallen dramatically.Until October 28, while net qin shares rebounded slightly, but fell to $8.80.
On October 29, muddy waters report again, points out that the network of the qin dynasty in response to the first question exist 10 "lies".Including qin yi da tong first big shareholder Xu Rong and network, the relationship between network company common qin said China will cash as a "secondary assets" behavior, etc.Announced on October 31, net of the qin dynasty has RMB 100 million ($16.4 million) deposit account to standard chartered bank account.The scale of transfer a total of about $100 million, the rest will be completed soon.
On November 19, qin company investors meeting held in the United States, the company executives respond to investors, institutions, and analysts at the scene of a variety of questions, analysts say network openness to the qin dynasty is of great help to respond to investor confidence.At the same time, the network of the qin dynasty also announced the company's future business layout and fiscal 2014 revenue forecast.Then qin share prices rise continuously, gradually out of the short shadow.Net qin's shares closed at $14.02 on Wednesday, a 3.44% drop from the last trading day.
Muddy waters with qin dynasty war, when investors began to company welcome to China again.Problem according to the initial public offering (IPO), a research firm Renaissance Capital of statistics show that in 2013 eight Chinese company completed the initial public offering in
the United States, has raised $800 million in funding, fundraising amount the previous year increased by 4 times.Market analysts believe that although only part of the recovery from the scandal, but it shows that investor sentiment has started to recover.
Net of the qin dynasty had already hired top Wall Street law firm Shearman & Sterling LLP, with the help of deloitte forensic accountant, start, an independent review of muddy water charges.
Bullock's criticism is just going round in circles, just shorting to earn profits.But with the help of the muddy water short net of the qin dynasty, Jim she wes (Jim Oberweis) the cloth of the charge of Asset Management companies (Oberweis Asset Management) aggressively buying nets qin, to increase the number of holdings nearly doubled to 1.8 million shares.Mr. Chavez said, "a short company also takes time. While shorting can bring panic, but eventually could not judge who wins or loses. I think the evidence in the long qin (net) side."Mr. Chavez said he thought the muddy waters report exists serious defects.
Since Morgan Stanley issued a report in December, said it had bought 5.2% net qin, after net qin stock prices have started to regain their upward trend.