not vested
Short-sellers in tussleby Dominique Nguy
Shortseller Anonymous Analytics recommended a "strong buy" rating for Apple supplier AAC Technologies (2018), which is under attack from another shortseller, Gotham City Research.
In May, Gotham issued two reports and questioned AAC's accounting, saying the company used "over 20 undisclosed related parties and dubious accounting to overstate profits since 2014."
However, in a twist to the drama, Anonymous Analytics yesterday said in a report - labelled "Hong Kong deserves a better hero" - that the Gotham report was grossly misleading and contained "a seemingly willful ignorance of what constitutes a disclosable related party under Hong Kong listing rules."
Anonymous Analytics also said Gotham's "short thesis alleging undisclosed related parties appears not only false, but it doesn't even make sense from a valuation perspective."
It put AAC's target price at HK$111.
Meanwhile, AAC Technologies denied all allegations made by Gotham in a clarification yesterday and said the company might repurchase shares of the company to protect interests of its shareholders.
It said trading of its shares will resume today. Shares of AAC last traded at HK$81.43.
"The clarification will restore truth to everything," said AAC chief executive Benjamin Pan Zhengmin yesterday.
AAC said in the clarification that Gotham's allegations are "groundless, false or misleading" and that it "created confusions of alleged related parties" to serve its own purpose.
It pointed out that Gotham has made use of entities with shareholders sharing "the same surname as the chief executive" and "the same name as the chief executive's sister."
It also said Gotham has a "complete lack of professional understanding of the operating business model of the company and the industry."
Richard Mok Joe-kuen, AAC executive director, said the company has no contact with Anonymous Analytics.
Pan added that he too was surprised by Anonymous Analytics' issuance of the report.
Mok said the company will conduct different measures and consult opinions from lawyers in order to protect the interests of the company.
"The management of our company should be focusing on the fundamentals of our business, and with regards to the noises in the market, I believe it will be better to leave it for the market to make its own judgment," said Mok.
Source: The Standard
http://www.thestandard.com.hk/section-n ... ?id=183713
It's all about "how much you made when you were right" & "how little you lost when you were wrong"