not vested
Anta Sports falls prey to short-seller attackby Stella Zhai
Shares of Anta Sports (2020) dived after short-seller organization Blue Orca suggested offloading Anta stock during the Sohn Investment Conference in Hong Kong.
The founder of Blue Orca Capital, Soren Aandahl, said his firm was doubtful about the state of the sportswear company, which has acquired 85 percent of Italian brand Fila.
It was looking hard at its revenue accounting and corporate governance, and the stock could fall as much as 34 percent.
Blue Orca recalculated Fila's retail revenue in China based on a calculation method of Fila Korea, the wholesaler that owns the other 15 percent of the brand.
It found that Anta overstated Fila China's retail revenue in 2018 by 41 percent. Therefore, Fila China's store revenue per square meter was actually lower than those of its competitors, including Nike and Adidas, in the mainland market. And that was the opposite of what the company had said.
Aandahl said Anta's valuation should be the subject of a corporate-governance discount as Anta
changed its chief financial officer three times within three years.Its valuation of Anta was HK$32.9 per share, representing a 34-percent decrease from the share price on Wednesday.
Shares of Anta fell 5.5 percent to HK$46.9 yesterday after plunging at one point below HK$43.3.
Anta's stock had gone up almost 32 percent this year up to Wednesday on optimism that followed the company's US$5.2 billion (HK$40.4 billion) deal last December to acquire Finnish sports brand Amer. But it had slipped over the past month amid Sino-US trade tensions.
Source: The Standard
http://www.thestandard.com.hk/section-n ... 0531&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"