Daewoo E&C plunges on accounting fraud allegation
26 March 2015
Maeil Business Newspaper
Shares in Daewoo Engineering & Construction plunged Thursday morning on concerns that the builder may receive a sanction for possible accounting fraud. The company’s stock price sank 7.43 percent to trade at 7,600 won at 10:55 a.m. Sources said financial authorities found a clue that the builder committed accounting irregularities worth more than 1.4 trillion won ($1.27 billion) and are poised to impose a sanction. A local media reported the Financial Supervisory Service will bring the case to a review committee. Daewoo Engineering & Construction and its accounting firm are declining the accounting fraud allegation.
Stock manipulation: ICVL Chemicals
19 March 2015
ICVL Chemicals went up nearly 100 times or 9841% in just over a year with marginal profits
ICVL Chemicals was earlier into trading of chemicals, shares and providing ‘advisory and consultancy services’. Listed in 2012, the company’s management changed hands in May 2014. Ram Alloy Castings became the new promoter. In January 2015, the registered office of ICVL Chemicals was shifted from Mumbai to Delhi and mineral extraction was included as additional business. With almost nil revenues reported in FY12-13 and FY13-14, ICVL Chemicals has begun to report revenues in the past two quarters. For the quarter ended September 2014 and December 2014, revenues were Rs4.09 crore and Rs8.30 crore, respectively. Net profit was just Rs5 lakh and Rs9 lakh, respectively. But does any of this have any bearing on its stock prices? The share price has risen from Rs2.20 on 13 December 2013 to as high as Rs218.70 on 5 March 2015—a rise of nearly 100 times or 9841%. Over the one-year period ended December 2014, the stock averaged just two-three trades a day, most of the time hitting the upper circuit. This is clearly a case of money laundering and tax evasion. At the current price, the stock is valued at a price-to-earnings of about 7,046 times. Will the regulators and tax authorities care to investigate?
Preparing for the Regulatory Challenges of the 21st Century
Commissioner Luis A. Aguilar
Georgia Law Review Annual Symposium
Financial Regulation: Reflections and Projections
University of Georgia, Athens, Georgia
March 20, 2015
Thank you, Professor [Carol] Morgan, for that kind introduction. It is a great honor to be here at the Georgia Law Review’s Annual Symposium. Before I begin my remarks, however, let me issue the standard disclaimer that the views I express today are my own, and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (“SEC” or “Commission”), my fellow Commissioners, or members of the Commission’s staff.
A pump-and-dump scheme straight out of a textbook; B.C. Securities Commission issues sanctions on a cut-and-dried case of market manipulation
19 March 2015
The Globe and Mail (Breaking News)
Where stocks are frequently traded in liquid markets, making money on them requires a super-power that probably doesn’t exist. To make money (consistently, that is) in Google stock, you’ve got to be better at analyzing information about Google than thousands of highly paid analysts and traders who themselves can’t beat each other consistently. And if you find someone who has this power, it will cost you a lot of your money to have them invest it for you. And you probably haven’t found them. If you don’t want to believe me, believe Cliff Asness and John Liew (http://www.institutionalinvestor.com/Article/3315202/Asset-Management-Equities/The-Great-Divide-over-Market-Efficiency.html).
Alternatively, you could find a stock that is lightly traded, round up a bunch of buddies, buy a large position in that company, trade that stock amongst yourselves to push up the price, then find someone who will buy the artificially inflated stock and book a flight to Mexico. Continue reading
Drug and Device Makers are Being Hit With More Securities Fraud Lawsuits
19 March 2015
Dow Jones Institutional News
Shareholders routinely file lawsuits seeking class-action status against companies alleging securities fraud, but the life sciences industry is attracting more than its share, according to a new analysis. Continue reading
Who is watching the Securities and Futures Commission?
Wednesday, 25 March, 2015, 11:13pm
The Securities and Futures Commission needs to take a long hard look at itself following the recent conclusion of the Andy Mantel fiasco which we wrote about on Tuesday. Its behaviour and the manner of its investigation were nothing short of disgraceful and its bully-boy approach to dealing with minor issues needs to be rectified. Continue reading
March 25, 2015 7:12 pm
Hanergy’s soaring share price raises questions; Hong Kong authorities need to satisfy themselves on the solar group
A Financial Times investigation over the past few weeks has shone a light on Hanergy, a Beijing-based solar business. One of a host of Chinese ventures that have achieved listings in Hong Kong in recent years, the company stands out mainly for the explosiveness of its stock price performance. Shares in Hanergy Thin Film, its 73 per cent owned Hong Kong-quoted subsidiary, have risen by about 1,800 per cent since the beginning of 2013. Continue reading