Wonder Auto Technology Restating 2008,2009 Annual Reports [View article]
Just a quick update for anyone interested.
"The Audit Committee commenced the investigation in response to a report alleging that the Company had engaged in several transactions without properly disclosing their related-party nature. Based on the information presently available to it, the Audit Committee expects that its investigation will continue at least through June 2011." http://1.usa.gov/HtTb34
"On and effective July 12, 2011, Qingjie Zhao resigned as Chief Executive Officer and President of Wonder Auto Technology, Inc. (the “Company”). Also on July 12, 2011, Meirong Yuan resigned as Chief Financial Officer of the Company." http://1.usa.gov/Hxw7gn
Check out all the allegations and the report from the independent directors committee here: http://1.usa.gov/HtTbji Wow. Lots of nefarious deeds. Here's a few: "The Committee finds that the Company should reevaluate its revenue recognition disclosures" "The Committee finds that the Company lacks reliable systems and internal controls timely and properly to track and account for costs associated with inventory, including inventory obsolescence, defective product, and the reworking of inventory. These deficiencies call into question the Company’s ability properly to calculate its inventory valuation, cost of sales and gross margin." "The Committee finds that the Company lacks sufficient qualified and competent accounting personnel and internal controls."
Staples: Best-In-Class Retailer With Growing Advantage Reports Wednesday [View article]
This was a simple (and inconsequential) mistake and the write-up has been edited to reflect Wednesday rather than Friday. If you don't want to trust the rest of the research, then so be it. I could not possibly care less.
The difference between our approaches is that I am less willing to pay for potential future growth. Rather, I focus on companies with long and stable track records that are trading at a discount to their current intrinsic value (rather than some hoped-for higher intrinsic value in the future).
I have no problem with IPHS management. As noted in my article, they seem to be doing a lot of things right. My problem is that the price currently doesn't provide a sufficient margin of safety. A purchase today is a bet that future growth will push the intrinsic value upward, whereas I like to pay less than the current intrinsic value.
If you are extremely confident in the company's growth potential, then you may draw different conclusions. Just be clear with yourself that you are paying for growth. Good luck!
What to Eye When Scouting an Undervalued Play [View article]
Hi alpha_zeta,
The person telling the story omits the death spiral aspects because, as the recent history shows, a "death spiral" is an illusion that exists only in the media. Actual performance is still extremely strong.
Don't confuse headlines for fact. Look at the underlying numbers for yourself - there is nothing to justify a death spiral. The only thing that exists right now is people claiming they know the company WILL go into a death spiral in the future. We'll see.
Wonder Auto Technology Restating 2008,2009 Annual Reports [View article]
"The Audit Committee commenced the investigation in response to a report alleging that the Company had engaged in several transactions without properly disclosing their related-party nature. Based on the information presently available to it, the Audit Committee expects that its investigation will continue at least through June 2011."
http://1.usa.gov/HtTb34
"On and effective July 12, 2011, Qingjie Zhao resigned as Chief Executive Officer and President of Wonder Auto Technology, Inc. (the “Company”). Also on July 12, 2011, Meirong Yuan resigned as Chief Financial Officer of the Company."
http://1.usa.gov/Hxw7gn
Check out all the allegations and the report from the independent directors committee here: http://1.usa.gov/HtTbji
Wow. Lots of nefarious deeds. Here's a few:
"The Committee finds that the Company should reevaluate its revenue recognition disclosures"
"The Committee finds that the Company lacks reliable systems and internal controls timely and properly to track and account for costs associated with inventory, including inventory obsolescence, defective product, and the reworking of inventory. These deficiencies call into question the Company’s ability properly to calculate its inventory valuation, cost of sales and gross margin."
"The Committee finds that the Company lacks sufficient qualified and competent accounting personnel and internal controls."
Trading suspended: http://1.usa.gov/Hxw7gp
Auditor resigned: http://1.usa.gov/HtT8UL
Is The VIX A Value Play? [View article]
Gamestop Is Deteriorating Quicker Than You Think [View article]
Staples: Best-In-Class Retailer With Growing Advantage Reports Wednesday [View article]
Good luck,
Frank
Innophos Holdings: Fairly Valued Unless Speculations Prove True [View article]
I have no problem with IPHS management. As noted in my article, they seem to be doing a lot of things right. My problem is that the price currently doesn't provide a sufficient margin of safety. A purchase today is a bet that future growth will push the intrinsic value upward, whereas I like to pay less than the current intrinsic value.
If you are extremely confident in the company's growth potential, then you may draw different conclusions. Just be clear with yourself that you are paying for growth. Good luck!
Why I Love GameStop and Think You Should Too [View article]
You can find my other value-focused articles at www.frankvoisin.com
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What to Eye When Scouting an Undervalued Play [View article]
The person telling the story omits the death spiral aspects because, as the recent history shows, a "death spiral" is an illusion that exists only in the media. Actual performance is still extremely strong.
Don't confuse headlines for fact. Look at the underlying numbers for yourself - there is nothing to justify a death spiral. The only thing that exists right now is people claiming they know the company WILL go into a death spiral in the future. We'll see.
Frank Voisin
www.frankvoisin.com
What to Eye When Scouting an Undervalued Play [View article]
You use forward earnings with impressive confidence. How has that worked out for you historically?
We'll see how this all plays out.
Frank Voisin
www.frankvoisin.com