After Muddy Waters came out with research two months ago that singlehandedly destroyed recent Chinese NYSE IPO, RINO, we predicted that there would soon develop a cottage industry of micro investment firms who do diligence on various Chinese frauds (and there are many of them), establish a short base, and subsequently release a research report in the name. Today we get the latest such possible casualty: meet China Green Agriculture, a Xian, China firm founded in 2000, which “engages in the research, development, manufacture, and distribution of humic acid based compound fertilizers in China… The company also engages in the development, production, and distribution of agricultural products, including fruits, vegetables, flowers, and colored seedlings.” Sure enough the company IPOed on the NYSE in mid-2008, and if the just released research report by J Capital Research is correct, the firm is about to join such other disgraces as RINO in the NYSE IPO dunce corner. To wit: “In this report, we present compelling evidence that China Green Agriculture (NYSE:CGA) has significantly over-stated its true revenues and earnings. We estimate that CGA’s value is no more than $2.85 per share, as opposed to its current market price of $9.”
Is China Green Agriculture (NYSE:CGA) the next Chinese fraud?
Submitted by Tyler Durden on 01/05/2011 via zerohedg.com
About the Author: stoup
Manny Stoupakis joined GeoInvesting in 2012 as a full time investor after working as a trader and equity analyst apprentice studying under GeoInvesting Co-founder Maj Soueidan since 2010. Before Manny joined GeoInvesting he worked in the sports athletic training field and had little to no finance background. Manny is a great example of the unique blend of people that make up our team, combining the everyday investor with Wall Street. His responsibilities at GeoInvesting include using financial platforms to research and build valuation models, interacting with management and investment professionals, and assisting in article generation for both bullish and bearish research reports.
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