OTCPK:TOUBF - Post by User
Post by
patpostroon Jul 11, 2011 10:16pm
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Post# 18820593
7 of 20 red flags..OUCH. Almost 50%!
7 of 20 red flags..OUCH. Almost 50%!I don't care if your long, short, bullish or bearish. This is NOT good news for Sino.
Sino-Forest Corp. (TRE) and West ChinaCement Ltd. were among Chinese companies triggering “redflags” from Moody’s Investors Service for potentially riskybusiness practices.
Moody’s looked at criteria that “highlight issues meritingscrutiny to identify possible governance or accounting risks fornon-financial corporate issuers in emerging markets,” analystsled by Elizabeth Allen in Hong Kong wrote in a report issuedtoday. Excluding real-estate developers, the average high-yieldcompany raised 7.1 flags in the study. Property companiesaveraged 5.7 red flags.
Sino-Forest, the tree-plantation owner targeted by shortseller Carson Block, triggered seven of 20 red flags,
in partfor having more than 30 percent of its revenue come from its topfive customers; having an auditor located in a different countryto key operations; and for doubling its total assets or revenuein three years.
SELL-OFF tomorrow?
https://www.bloomberg.com/news/2011-07-11/west-china-cement-raises-most-red-flags-of-chinese-firms-moody-s-says.html
It's all about the DEBT!!