Arihaan Capital
Long/short equity, special situations

Amira Nature Foods: More Questions, Fewer Answers

Amira Nature Foods (NYSE:ANFI) released Q3, FY2014 results on 2/25/14 that beat on the top-line but missed consensus EPS estimates. We believe the earnings release provided further validation of the unraveling of the ANFI growth story, and we continue to have the highest conviction that ANFI represents an extremely compelling short opportunity at current levels.

Below, we highlight some key red flags discerned through analysis of the earnings release and conference call transcript. Note that the 6-K is yet to be filed, and we will update our thoughts accordingly.

A. Poor quality of earnings

The tax rate of 18.95% was the lowest reported over the past 11 quarters. To put this in context, the tax rate in...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details