China Short Syndrome: Are Other Names At Risk?
"Attack when they are unprepared, make your move when they do not expect it."
- Sun Tzu, The Art of War
Deer Consumer Products, Inc. (DEER), a $310 million market cap Chinese consumer product company, had its shares dumped after a SeekingAlpha.com article was published alleging management fraud.
Specifically, the article focused on alleged fraudulent land purchases made by the company. DEER traded down over 20% after the article hit the wire.
(Click to enlarge)
The land purchase questions appear to have wiped out in equal or greater amount than the cost of the land in question. This is not what I would call the strongest hit piece on a company.
China is full of fraud and corruption at just about every level, much greater than a level to which most Americans are accustomed. If there is something improper about the transaction, it may not be fraud against the shareholders;
Complete Story
Comments