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nemesisjudge

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  • Fraud Is Unlikely At New Oriental Education [View article]
    I will ask the same question until people like yourself gain the ability to properly read and understand report and accounts before jumping in to investments.

    I am neither long or short of the stock, and have no intention of taking a position either way.
    Oct 12 05:56 AM | Likes Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    I also admire your conviction.

    Peace be with you, Perry.
    Oct 12 02:40 AM | Likes Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    Jerry-Z,

    Good comment but unfortunately it is your point that is not logically sound.

    If EDU kept minimum inventory for its students in 2011, then it would have kept minimum inventory in 2010. Therefore the minimum inventory level should have risen. More so given the expansion in the number of education establishments.

    More establishments + More students = More inventory

    In any event, if by some astonishing feat of just in time technique that EDU can time the arrival of each course book with each of its nearly 2 million students, it still has to pay for it. The cash flow statement clearly shows that inventory cost was virtually unchanged. It spent no extra cash on course materials, be that paper, text books, intellectual property rights or whatever, despite a huge jump in student numbers.

    Anyone else with an explanation?
    Oct 12 02:39 AM | Likes Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    geleng,

    What you quote is from Regulation S-K, which are part of the SEC reporting requirements. It is not the only set of rules because there is also Regulation S-X for SEC financial statement disclosures. The two regulations are to be interpreted together; Regulation S-K Item 404 should be regarded as an expansion to the Regulation S-X rules. it is not a choice between one of the two.

    Regulation S-X extends the meaning of the term 'financial statements' to include all notes to the statements and all related schedules. That includes related party transactions disclosures, as defined by FASB 57. This can be found in the SEC Financial Reporting Manual, which anyway is updated more frequently and more recently than your 2006 Regulation S-K.
    Oct 11 09:01 PM | 1 Like Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    Oh really? It is a load of quack because this is an illiquid and volatile stock. The fact that it moves both up and down by similar amounts demonstrates this.

    By your definition, you should also apologize every time a stock moves down in one day.
    Oct 11 09:00 PM | 1 Like Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    A 115% gain is irrelevant to this conversation because this conversation did not start when the stock was 115% lower around one year ago. This conversation started ten days ago.

    If you are going to start telling lies and twisting the truth by saying that I was cautious on this stock when it was 115% lower, then you lose total credibility with anything you say. Are you really that dishonest and desperate? What other twisting of the truth have you done that damage your credibility to believe anything you say?

    I am right about the disclosure rules. Regulation S-X is very clear.

    It is impossible for me to explain any more simply than I have about the risk assessment stage; even a child could understand it.

    Yep, your comments are a very slippery. People need to tread carefully with anything you say.
    Oct 11 08:55 PM | 1 Like Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    No, I will repeat it again since you have great difficulty in understanding anything whatsoever.

    When the risk identification stage has already been reached, the next stage is risk assessment. Since I am already at the risk assessment stage, then I do not need to identify the risks again, because I have already identified them. Therefore at the risk "assessment" stage, which is the stage that I am at, I then develop an understanding of the risks.

    Is that simply enough explained for you?

    You asked for proof that you have no understanding of disclosure rules, so I gave that proof to you, because you chose an answer that incorrectly stated the disclosure rules as your author's pick . Your reply to that is you can choose any author pick you like-yes you can, and you chose an incorrect answer.

    What has a historic share price rise for TTM got to do with this conversation? I was not in the KNDI debate when the share price was at much lower levels. Totally irrelevant and what a load of rubbish.

    I am running circles around you. Stick to your day job and next time think twice before trying to charge someone $500 per hour for your advice.
    Oct 11 01:13 PM | 1 Like Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    I thank you for your explanation but do not think that is right either.

    If students pick up books at the start of a course (which they do), and EDU supplies books for its classes (which it does), and most importantly if EDU classifies publications and course materials as "Inventory" (which they do) in their 20F Filings, then course materials must be important. Obviously course materials are important-EDU must teach students with books, etc; students in every other country find it essential to have course material to pass the GMAT, GRE.

    You also suggest that EDU uses a printing press. But that means they photocopy test bank questions and other books, but have no increase in cost due to intellectual property rights, etc. EDU got in to trouble with this a few years back.

    Even if they use a printing press, the cost of printing must rise. They would need to stock up on more paper, and more ink, etc.They used a printing press in 2010, so if they use a printing press in 2011, then costs must rise proportionally. But they do not.

    Printing machines cannot be part of inventory. Printing machines are part of PPE, not inventory. Moreover, the company clearly does not include printing machines in its inventory in the 20F filings.

    It is not right to say that the costs are small and therefore they should be ignored. These inventory costs and increases seem much lower than they should be. That is precisely the point.

    Does anyone else have an explanation?
    Oct 11 12:53 PM | Likes Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    Even if the course materials are free for students, it will still be an inventory cost to EDU, therefore the cost of inventory must rise commensurately with the number of students.

    Even if students buy books from other sources for certain courses, they would have done the same in the previous year, so there still should be a like for like increase year on year for courses that require books supplied from EDU.

    It is amazing if EDU uses cheap or outdated course books to get the same great results for its students for international standard exams such as GRE or GMAT, compared to students in the US that need to buy expensive up to date course materials to get the same good results with the same international exams. There must at least be an increase in copyright costs or intellectual property rights for the up to date test banks.

    Has anyone got an answer for this that makes proper sense?
    Oct 11 08:34 AM | Likes Like |Link to Comment
  • Kandi Technologies Rebounds After Short Attack [View article]
    I assume that you mean "assess the risks" instead of "access the risks".

    I have already identified the risks, gone past that stage, and now I am "assessing" them.To "assess" the risks, there is a need to first understand them. You are confusing the first stage, which has already been reached, with the second stage.

    Maybe you need a better choice of author's picks, by ensuring you choose comments that correctly state disclosure rules, instead of choosing comments that are incorrect, if you insist that you fully understand them.

    Unfortunately the stock markets do not operate on a innocent until proven guilty basis. Instead they work on a risk/reward basis.

    The part of my discussion that I gave you to provide a fair balance, which helps you, and supports you view, is that non-disclosure of related party transactions, is not by itself a major fraud, but it does increase risk.

    A more accurate description of my comments is that they question assertions and claims made by people. The vast majority of recommendations are "Buy" recommendations, so statistically my comments will counter-balance in the other direction.

    It seems that KNDI has now lost most of the gains that it made last Friday, which at the time you pointed out to me as an endorsement of your correctness. Now that is what I call quacking.
    Oct 11 06:18 AM | 1 Like Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    It is not a small issue that revenues increase 44%, but inventories have virtually no increase.

    It is precisely the case that the change in inventories is so small when it should be a lot larger. You cannot say that just because the inventory increase is small it is therefore irrelevant or should be ignored.
    Oct 11 05:20 AM | Likes Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    If students pick up study materials before beginning class, then course materials and publications (which are defined as inventory in their 20F Filings) are both critical and an integral part of their teaching package. They must carry enough stock for students to pick it up. They have a lot of students. It cannot be ignored.

    In fact, looking at their cash flow statement, they actually had a positive net cash inflow from inventory in 2011, meaning they spent no extra money on course materials despite revenues increasing 44%. How does any company increase revenues by 44% but not increase inventories at all?

    I do think that this should be looked in to further.
    Oct 10 10:17 PM | Likes Like |Link to Comment
  • OCZ: Accounting Issues And A New CEO Who Gets It - Is A Turnaround Likely? [View article]
    Interesting situation.

    If the company is to increase focus on innovation, etc, then does this mean it has to ramp up R&D, which will use up even more cash?
    Oct 10 04:54 PM | Likes Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    I see what you mean. Like a Just in Time technique.

    But that risks being out of stock when the course starts, and as the Gold Pebble reports says, students come to pick up course materials. So they must stock course materials that match the increase in student numbers.

    Also, it does not cost much to store these books in stock compared to the risk of being out of stock when the course starts.
    Oct 10 04:05 PM | Likes Like |Link to Comment
  • Fraud Is Unlikely At New Oriental Education [View article]
    Even if students buy old textbooks, there must still be an overall net increase greater than 5% compared to the 44% increase in revenues. It is statistically too incredible that virtually every extra student added decided to buy outdated worn out course materials.

    Also, using old textbooks that are outdated even with small content change can cause problems with class assignments, and with various exams which are updated every year. I doubt Becker would be as successful if they used old course books with outdated material for updated exams.
    Oct 10 04:00 PM | Likes Like |Link to Comment
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