Equity investors pay heavily for Byco’s ‘maths error’
7 May 2015
In a manner typical of sentiments-driven stock markets, Monday saw the profit-conscious equity investors at Karachi Stock Exchange (KSE) incurring huge losses due to, what they claim, a “misleading” earning announcement made by Byco Petroleum Pakistan Limited (BPPL).
The petroleum company, though conceding to have made a “maths error”, denies its correlation with the already declining price of the stock. Having ended 16-paisa down at Rs 11.63 Tuesday, BPPL rallied up Wednesday to Rs 12.42, its upper circuit. The front regulators at KSE have taken notice of Monday’s irregularity and might penalise the listed firm if found guilty of alleged manipulation of its share prices. Continue reading →
Lew Mon-hung ‘just helping’ out in US$225m share sale, court hears in fraud trial
Julie Chu firstname.lastname@example.org
30 April 2015
Businessman Lew Mon-hung said he was merely acting as a “white knight” to help a troubled listed company raise funds to buy a US oil field when he joined the firm and promoted the sale of its new shares, totalling US$225 million, a court heard yesterday.
Lew, a member of the National Committee of the Chinese People’s Political Consultative Conference, allegedly deceived the stock exchange and potential investors of Pearl Oriental Innovation. Continue reading →
Earlier Post: Rolta India: Glaucus Research – “Rolta has fabricated its reported capital expenditures in order to mask that it has materially overstated its EBITDA”; Rolta India: Glaucus Research Rebuttal to Rolta Response
Glaucus Research issues a Second Rebuttal to Rolta – Reiterates Strong Sell rating on Delaware-Issued 2018 and 2019 Corporate Bonds
On April 16, 2015, we published a detailed investment opinion (the Report) on the 2018 and 2019 US$ bonds (the Junk Bonds) issued by the Delaware subsidiary of Rolta India Limited (Rolta or the Company). In our Report, we presented extensive analysis and evidence, which in our opinion, indicate that Rolta has fabricated its reported capital expenditures in order to mask that it has materially overstated its EBITDA. On April 20, 2015, Rolta issued a response (the First Response) which not only materially contradicted previous statements by the Company (including statements in its 2013 and 2014 bond prospectuses), but was also muddled, riddled with factual errors and deliberately evasive. Continue reading →