Yan Tat hit amid `pump and dump’ fear
Imogene Wong
Wednesday, May 13, 2015
A large batch of Yan Tat Group Holdings (1480) shares was exchanged between two brokerages last Thursday, just before a dramatic climb and even more dramatic plunge in the counter a day after that, data from the bourse showed yesterday. More than 90 percent of the firm’s public float is now held by four brokerages, leading many commentators to think the printed circuit board maker has been the subject of heavy speculation. Continue reading
Month: May 2015
Vipshop: We Are Not Buying The Financial Statements (Mithra Forensic Research)
http://seekingalpha.com/article/3172676-vipshop-we-are-not-buying-the-financial-statements?ifp=0
Mithra Forensic Research, mithraforensicresearch.com
Long/short equity, growth, contrarian, activist investor
Vipshop: We Are Not Buying The Financial Statements
Top Idea | May. 12, 2015 5:00 AM ET | 10 comments | About:
Disclosure: The author is short VIPS. (More…)
Summary
Vipshop has enjoyed share price appreciation of 45% in 2015 year-to-date.
Forensic models suggest that the firm has manipulated sales, receivables, profit and other asset accounts.
In several instances, the company’s financial statements are contradicted by management’s own disclosures.
May 11, 2015
Vipshop: We Are Not Buying Your Financial Statements
TABLE OF CONTENTS
Executive summary
VIPS has recorded consistently impressive results since its IPO
A reliable fraud indicator warns that VIPS is a potential manipulator
The multiplier effect: if VIPS uses cash from related parties, it can Gross them up to report even higher fake sales
This is downright Gross
Inventory: what’s mine is mine, and what’s yours is also mine
Lefeng and ovation: sweetheart deals on Valentine’s day?
Logistics investments: the last mile may be the last straw
CAPEX: aren’t we already swimming in excess capacity?
As RPTs grow, so grows ‘Other Receivables’
Held-to-maturity: is this another name for Related Party Loans?
Vipshop: We Are Not Buying Your Financial Statements
China’s leading discount ecommerce retailer has been flagged as possible manipulator by reliable forensic accounting quant models. Our qualitative analysis of the company’s financials also reveals possible improper GAAP accounting and financial anomalies that suggest that the quant models are indeed correct. In our opinion, VIPS may have grown its 2014 gross profit by $573M by possibly diverting funds to related parties to be used to transact fake sales. Continue reading
SEC Charges ITT Educational Services, Top Executives With Fraud; For-profit educator allegedly hid poor performance, financial impact of student-loan programs
SEC Charges ITT Educational Services, Top Executives With Fraud
For-profit educator allegedly hid poor performance, financial impact of student-loan programs
The Securities and Exchange Commission said it has filed fraud charges against for-profit educator ITT Educational Services and two top executives. ILLUSTRATION: BLOOMBERG
CHELSEY DULANEY
Updated May 12, 2015 11:54 a.m. ET
The Securities and Exchange Commission on Tuesday said it brought fraud charges against ITT Educational Services Inc. and two of its top executives, alleging that they misled investors about the looming financial impact of two badly-performing student-loan programs on the for-profit educator.
According to an SEC complaint filed in the U.S. District Court for the Southern District of Indiana, the company, Chief Executive Kevin Modany and Chief Financial Officer Daniel Fitzpatrick concealed from ITT’s investors the poor performance and magnitude of ITT’s guarantee obligations for two student-loan programs. Continue reading
HK-listed Chinese small caps Yan Tat Group (1480 HK) and Jicheng Umbrella (1027 HK) plunge on SFC market probe rumors
http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=156921&sid=44443103&con_type=1
Small caps plunge on SFC market probe rumors
Imogene Wong
Tuesday, May 12, 2015
Shares of small-cap companies including Yan Tat Group Holdings (1480) and Jicheng Umbrella Holdings (1027) tumbled yesterday as reports emerged that regulators were probing abnormal gains in the stocks. Yan Tat – a mainland-based manufacturer of printed circuit boards with a market capitalization of about HK$2.2 billion – dived nearly 50 percent to HK$9.10 yesterday. It soared to as much as HK$102 on Friday and then falling to HK$17.44 on the same day. It was listed in December. Another newly listed firm, Fujian- based Jicheng Umbrella, surged from its debut price of HK$1.10 in February to hit HK$13 yesterday – but that was down 18.2 percent from Friday after it announced a share split. Continue reading
Mingyuan Medicare (233 HK): Missing Executive Director, Audit Delay in Cash Balance
12 May 2015: (233) Mingyuan Medicare: Mingyuan Medicare Development Company Limited has tried to contact Zhao Chao, an executive director of the company, since the end of December 2014. All the attempts were unsuccessful. Zhao is responsible to oversee the operation of the medical centres management division of the company (the Division). The Division has been run by experienced management team for years and Yao Yuan, the chairman and CEO of the company, has already taken up the responsibility to oversee the Division during Zhao’s absence.
27 March 2015: (233) Mingyuan Medicare: Mingyuan Medicare Development Company Limited expects to record a small profit for the year ended 31 December 2014 due to a gain generated from recovery of other receivable previously written off
18 March 2014: (233) Mingyuan Medicare: Mingyuan Medicare Development Company Limited issued profit warning for the year ended 31 December 2013 due to significant increase in impairment losses of goodwill and other intangible assets
11 March 2013: (233) Mingyuan Medicare: The board of directors of the Company (the “Board”) wishes to inform the shareholders of the Company and potential investors that based on the management’s preliminary assessment of the unaudited management accounts, the Group may record a loss for the year ended 31 December 2012, as compared to a profit for the year ended 31 December 2011. The loss is primarily due to the substantial increase in amortisation of intangible assets. Continue reading
Toshiba Set to Drop by Limit on Extended Accounting Probe in Understated Construction Costs
Toshiba Set to Drop by Limit on Extended Accounting Probe
7:40 AM SGT
May 11, 2015
Toshiba Corp. lost $2.8 billion in market value after the industrial and electronics group withdrew its earnings forecast pending an internal probe into improper accounting on infrastructure projects. The shares fell 17 percent, the biggest drop since March 2011, to 403.3 yen in Tokyo. The company announced it was extending an accounting probe and withdrawing its earnings forecast for last fiscal year on May 8, after trading had closed. Continue reading
Pledging shares by promoters increases risks
Pledging shares by promoters increases risks
Share pledging can raise a red flag if done for personal reasons such as buying property
Ashley Coutinho | Mumbai
May 11, 2015 Last Updated at 12:30 IST
Last year, shares of Bhushan Steel took a beating after its lenders invoked nearly 14 million pledged shares held by the company’s promoters. Pledging of shares by promoters can be a cause for concern especially when the market is going through uncertain times. Continue reading
Who looks after the minority investor? An independent report found instances of related-company transactions by United Spirits, prior to the takeover by Diageo, not disclosed earlier. Recovery of amounts lent to related companies is in doubt, to the detriment of minority shareholdes.
http://www.hindustantimes.com/analysis/who-looks-after-the-minority-investor/article1-1345285.aspx
Who looks after the minority investor?
J Mulraj
8 May 2015
Hindustan Times
India, May 8 — Stock Exchanges in India used to be self regulatory organisations (SROs) earlier. After being hit by the scandals of Harshad Mehta, and then of Ketan Parikh, the Government decided that self regulation was not working, and set up SEBI as a regulator. Thereafter, due to some stellar work by SEBI, there has not been any major crisis in stock markets. A scandal has erupted, though, in a commodity exchange, NSEL, due to a lack of proper oversight by the regulator FMO, (or by the absence of adequate power given to FMO to regulate it) and also by the inexplicable latitude given to NSEL by the then Ministry of Corporate Affairs in granting exemptions. NSEL await justice for an outright fraud and the delay by the Government is inexplicable, and dissuades investors.
The danger to minority investors, globally, now comes more from corporate scandals, and it is here that the question in the title needs to be answered. Continue reading
Sebi cracks down on Rs 420-cr tax fraud and pump-and-dump stock manipulation, bars 178 entities
Sebi cracks down on Rs 420-cr tax fraud, bars 178 entities
After finding them guilty of manipulation in the stock market for making illegal gains, Sebi has restrained the 178 entities, including Pine Animation, from accessing the securities market.
8 May 2015
Press Trust of India
Mumbai, May 8 (PTI) In a fresh clampdown on misuse of stock market platform for suspected money laundering activity, Sebi today banned Pine Animation and 177 related entities from securities market for alleged tax evasion worth Rs 420 crore. The capital market watchdog in December last year had barred 260 entities, including individuals and companies, from the securities markets, for indulging in similar activities. The latest ban has been imposed on 178 entities, including Pine, its two promoters and eight directors. Noting that stock exchange system cannot be permitted to be used for any unlawful/forbidden activities, Sebi today said that “prima facie” certain market manipulations are taking place in the scrip of Pine.
“… it can safely be assumed that the entire modus operandi of allotting shares on a preferential basis, announcing a stock split and then bringing in connected entities to provide exit was a scheme devised to make ill-gotten gains,” the regulator said. Sebi also noted that the modus operandi of pumping up the share price artificially and then dumping the price so that the same cycle could be repeated, demonstrates the malafide intention of the Pine Group.
Toshiba Withdraws Forecasts, Cancels Dividend on Accounting Probe
Toshiba Withdraws Forecasts, Cancels Dividend on Accounting Probe
May 8, 2015
Toshiba Corp. withdrew its earnings forecasts for last year and won’t pay a year-end dividend after finding improper accounting on infrastructure projects.
A third-party committee is also being formed to further investigate the matter, the Tokyo-based company said Friday. The company had projected net income of 120 billion yen ($1 billion) on sales of 6.7 trillion yen in the year ended March. It’s German-traded shares plunged. Continue reading
AsianExtractor: Unearthing Accounting Fraud in Asia 