The Paper World Of Brookfield Asset Management [View article]
Movie555: SIRFs website clearly discloses that SIRF has no "group" and no one affiliated with us has any long or short positions in companies we write about. No one outside of SIRF's editorial process saw the article prior to release. There is no way for me or SIRF to benefit if any company's securities move in value. Donors do not give tips and we don't take advice from them. They learn of articles only when we release them -- just like you.
Nat Stewart: I never said or implied that BAM never answered questions. Please reread the three final paragraphs as they are exceptionally clear on this point (you can see what we asked and how they responded by clicking thru the links.) The article did say that when we asked for clarification on their answers, and posed additional questions -- a standard process for reporters -- they declined further comment and issued a legal threat. So you are clear, BAM was approached with our questions, given ample time to respond and was shown what we looked at in terms of source documents.
You may fully disagree with our reporting but we are very transparent in our investigative reporting approach and methodology.
With respect, I hope that addresses your questions.
K12 Inc.: The Skirmish In Seminole County And The Desperate Race [View article]
V. Ariaban,
Perhaps a closer reading is required. The issue is that NCAA had a big beef with programs using K12's Aventa for distance learning. There were quite a few programs-to say of nothing of student lives-thrown in disarray. K12 certainly thinks it's a problem, but you don't.
School districts pay K12 what they budget for education, per pupil. This isn't Edison, trying to arbitrage municipal education budgets. In return, they have both guidelines, such as certified teachers in classrooms, and expectations, such as progress rates on state/national standardized tests.
Harbin Electric: The Abax Daisy Chain of Unanswered Questions [View article]
MMB:
Hmmm, "Cowards." I'll hold off on the name calling but you won't, so that makes everything rather more stark, in terms of seriousness and credibility.
You understand that Citron makes calls based on the research underlying his positions, and I simply report on companies that have sketchy financial filings, right?
By the way, I suggest you take a very good look at the recent HRBN filings in light of this very article. Abax and HRBN's founder Yang have a very, very interesting recent history. Odd how much he has personally borrowed from the fund, isn't it? especially since none of it was disclosed.
Harbin Electric: The Annals Of Fraud [View article]
No, MMB, I do it because I am a reporter and that's what reporters are supposed to do: Report on dubious deals and sleazy doings.
Please, do tell me of the connection between Andrew Left, "Alfred Little" and myself. Really. Flesh it out. When I was at Fortune and the NY Post and I reported on things the WSJ and NYT were also reporting on, was I also in collaboration then? What was my agenda in being the first to prove that Lehman was a goner or that AIG was screwed?
After you get done with framing out "the connection" then answer me this: Is there any situation I can write about troubled companies and their finances that isn't evidence of a conspiracy to you?
Harbin Electric: The Annals Of Fraud [View article]
BAWE: I am not short the stock, nor, in the dozens of investigative pieces I've written on the likes of AIG, Bear, Lehman, Fannie et al have I ever been short or owned puts.
The Harbin Land Shuffle: A Classic Bait And Switch [View article]
Gold's like Pyrite: When the investigator asked for anonymity (in terms of identifying him by name; his voice and photo are in the story), he said that China was a place where critical reporting and investigation have a documented track record of being negatively reinforced. Specifically, he did not wish to have his internal travel freedoms compromised, or, given some of the lovely people who have launched RTOs, any violence to come upon him.
Akhalt: You are acting rather silly. I am in no way restricting or limiting your post's visibility. Specifically, I addressed, in full, your view that the company profiled was not HRBN's customer. I'll go over it again: For several months, my sources have called the company and been told of this company by Harbin. Nor, in an SEC filing, could it possibly be acceptable for a company to put down "Detroit, component manufacturer/assembler" when disclosing material concentrations of revenue risk or vendor/supplier relationships.
Harbin Electric: The Annals Of Fraud [View article]
Eitd643: Harbin has told investors, analysts and frankly anyone who asked them about this specific company. There certainly are any number of auto suppliers in this general vicinity making a host of components, but only one that Harbin has told those doing research was their second largest customer for car-seat adjusters.
Harbin Electric: The Annals Of Fraud [View article]
Gold's Like Pyrite: The company's executives confirmed verbally, on the record to the investigator the approximately $26mm-$27mm in revenue, stating that any larger figure is likely taking into account other operating units (Jiangsu Liyang is part of a diversified conglomerate.) They apparently, per his notes, also re-emphasized that number when the taping stopped.
Moreover, the unit, in its presentation to lenders and customers, uses the information contained within the credit report linked in the story (originally used in the 8/3 Citron story) which puts the revenue run rate at about $24 million, broadly congruent with both exec's assertions.
Generous Jack: Thank's for the offer of friendship, but I've nothing to hide. I'm short nothing and have no puts. I make no money one way or the other here.
Of all the comments made here, I think I'll respond to Cotton 2006's:
I asked for a piece of 8.5" x 11" paper since I was asked to write down my name, hometown, reason for being there and cell phone number. My cassette recorder and reporters notebook were not equal to the task.
As to a translater, we had been personally assured by Jackie Lam, whose English is quite serviceable, that there would be no language barriers and a translater--which I had sought to bring--would be unnecessary.
I had wondered as to the reason for the sudden cancellation but now, I suppose, I have my answer.
Others: I feel that the Editor's note on Kimchi makes clear my imprecise descriptive for stewed or spiced cabbage.
Harbin Electric Loses Its Private-Equity Suitor; What Now? [View article]
All, I thank you for bringing the errors to my attention and I regret having made them. On thefinancialinvestigat... I have changed the economic commitment of Barings and corrected the name of the China Development Bank. As I was gone yesterday, a pair of China reverse-merger specialists, Roth Capital and Maxim, released Buy reiterations and I linked to those reports as well. I have E-mailed Seeking Alpha and asked for those changes to be made as well.
Finally, I added some additional commentary. Suffice to say that while I had thought that a major investment bank like Goldman could have gotten a deal done--e.g. the "new" credit mania and such--I am now deeply skeptical. Peddling reverse merger loans for an unrated company with a dubious underwriter, slowing operations and problematic financials? Maybe, maybe not.
The Paper World Of Brookfield Asset Management [View article]
Nat Stewart: I never said or implied that BAM never answered questions. Please reread the three final paragraphs as they are exceptionally clear on this point (you can see what we asked and how they responded by clicking thru the links.) The article did say that when we asked for clarification on their answers, and posed additional questions -- a standard process for reporters -- they declined further comment and issued a legal threat. So you are clear, BAM was approached with our questions, given ample time to respond and was shown what we looked at in terms of source documents.
You may fully disagree with our reporting but we are very transparent in our investigative reporting approach and methodology.
With respect, I hope that addresses your questions.
K12 Inc.: The Skirmish In Seminole County And The Desperate Race [View article]
Perhaps a closer reading is required. The issue is that NCAA had a big beef with programs using K12's Aventa for distance learning. There were quite a few programs-to say of nothing of student lives-thrown in disarray. K12 certainly thinks it's a problem, but you don't.
School districts pay K12 what they budget for education, per pupil. This isn't Edison, trying to arbitrage municipal education budgets. In return, they have both guidelines, such as certified teachers in classrooms, and expectations, such as progress rates on state/national standardized tests.
Harbin Electric: The Abax Daisy Chain of Unanswered Questions [View article]
Hmmm, "Cowards."
I'll hold off on the name calling but you won't, so that makes everything rather more stark, in terms of seriousness and credibility.
You understand that Citron makes calls based on the research underlying his positions, and I simply report on companies that have sketchy financial filings, right?
By the way, I suggest you take a very good look at the recent HRBN filings in light of this very article. Abax and HRBN's founder Yang have a very, very interesting recent history. Odd how much he has personally borrowed from the fund, isn't it? especially since none of it was disclosed.
Harbin Electric: The Annals Of Fraud [View article]
Please, do tell me of the connection between Andrew Left, "Alfred Little" and myself. Really. Flesh it out. When I was at Fortune and the NY Post and I reported on things the WSJ and NYT were also reporting on, was I also in collaboration then? What was my agenda in being the first to prove that Lehman was a goner or that AIG was screwed?
After you get done with framing out "the connection" then answer me this: Is there any situation I can write about troubled companies and their finances that isn't evidence of a conspiracy to you?
Feel free to provide proof.
Thanks in advance.
The Harbin Land Shuffle: A Classic Bait And Switch [View article]
Harbin Electric: The Annals Of Fraud [View article]
Sillier and sillier. What, I wonder, do you think was clarified by my saying I don't short stocks?
The Harbin Land Shuffle: A Classic Bait And Switch [View article]
I said or implied no such thing> I have repeatedly stated I have no position in Harbin, or any other, securities .
Harbin Electric: The Annals Of Fraud [View article]
The Harbin Land Shuffle: A Classic Bait And Switch [View article]
Akhalt: You are acting rather silly. I am in no way restricting or limiting your post's visibility. Specifically, I addressed, in full, your view that the company profiled was not HRBN's customer. I'll go over it again: For several months, my sources have called the company and been told of this company by Harbin. Nor, in an SEC filing, could it possibly be acceptable for a company to put down "Detroit, component manufacturer/assembler" when disclosing material concentrations of revenue risk or vendor/supplier relationships.
Harbin Electric: The Annals Of Fraud [View article]
Harbin has told investors, analysts and frankly anyone who asked them about this specific company. There certainly are any number of auto suppliers in this general vicinity making a host of components, but only one that Harbin has told those doing research was their second largest customer for car-seat adjusters.
Thank you for the English link.
Harbin Electric: The Annals Of Fraud [View article]
The company's executives confirmed verbally, on the record to the investigator the approximately $26mm-$27mm in revenue, stating that any larger figure is likely taking into account other operating units (Jiangsu Liyang is part of a diversified conglomerate.) They apparently, per his notes, also re-emphasized that number when the taping stopped.
Moreover, the unit, in its presentation to lenders and customers, uses the information contained within the credit report linked in the story (originally used in the 8/3 Citron story) which puts the revenue run rate at about $24 million, broadly congruent with both exec's assertions.
Generous Jack:
Thank's for the offer of friendship, but I've nothing to hide. I'm short nothing and have no puts. I make no money one way or the other here.
ChinaInsight:
Nice try.
Blackboard: A Tale Of 2 Companies [View article]
Wrong guy.
The End of CCME's Fairy Tale [View article]
I asked for a piece of 8.5" x 11" paper since I was asked to write down my name, hometown, reason for being there and cell phone number. My cassette recorder and reporters notebook were not equal to the task.
As to a translater, we had been personally assured by Jackie Lam, whose English is quite serviceable, that there would be no language barriers and a translater--which I had sought to bring--would be unnecessary.
I had wondered as to the reason for the sudden cancellation but now, I suppose, I have my answer.
Others: I feel that the Editor's note on Kimchi makes clear my imprecise descriptive for stewed or spiced cabbage.
Harbin Electric Loses Its Private-Equity Suitor; What Now? [View article]
I thank you for bringing the errors to my attention and I regret having made them. On thefinancialinvestigat... I have changed the economic commitment of Barings and corrected the name of the China Development Bank. As I was gone yesterday, a pair of China reverse-merger specialists, Roth Capital and Maxim, released Buy reiterations and I linked to those reports as well. I have E-mailed Seeking Alpha and asked for those changes to be made as well.
Finally, I added some additional commentary. Suffice to say that while I had thought that a major investment bank like Goldman could have gotten a deal done--e.g. the "new" credit mania and such--I am now deeply skeptical. Peddling reverse merger loans for an unrated company with a dubious underwriter, slowing operations and problematic financials? Maybe, maybe not.
A good Thanksgiving to all.
Harbin Electric: Hope and the Magic Margin Machine [View article]