GREY:RGVNF - Post by User
Post by
redoctober777on Apr 26, 2011 12:01pm
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Post# 18488904
REV is not alone . . .
REV is not alone . . .Excerpted from "Citron Research." Some of this description sounds eerily familiar. Maybe REV should change from a "mining and oil & gas company" to a software company?
Introduction
Tothink the fraud in the US listed Chinese stocks is limited to the RTOmarket is naïve. Citron introduces a story that has all the markings ofa complete stock fraud — with off balance sheet transactions thatcreate outsized margins and management with backgrounds unsuitable torun a public company.
Themost obvious risk factor in the China space, and the factor that haslinked so many of these collapsed stocks, is obviously “the story toogood to be true”. Which brings us to the curious case of LongtopFinancial (NYSE:LFT), a company that produces software for the bankingsector. In this report, Citron outlines several concerns which shouldbe considered by the auditors as they prepare the company’s annualaudit. It is the opinion of Citron that every financial statement fromits IPO to this date is fraudulent … read on to understand.