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Chinese 'Virus' Spreads To Germany: Meet The Company That Went From Record High To Zero In 1 Week
It appears the frauds, falsehoods, and f##king fallacies are all being exposed at the same time. While we have noted three companies that have collapsed in the last week - destroying their billionaire owners' wealth in the process - it appears the Chinese capital destruction virus has spread to Germany. Joyou AG - a Chinese affiliate of German bathroom manufacturer Grohe - has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.
The following 'real company' employs over 4000 people in Nan An, China.
Jianping "Dorothy" Wu is the CFO
It was a €400 Million company a week ago... And this just happened...
Bloomberg describes the company:
Joyou AG designs, produces and sells faucets and other sanitary ware products in China under its own brand as well as other international brands. The Company's offers bathroom faucets, kitchen products, shower products as well as other bathroom products and other faucets and sanitary hardware.
Joyou AG says issues notice of loss pursuant to section 92(1) of the german stock corporation act.
Joyou says it must be assumed that a loss of more than half of registered share capital of company has occurred.
Management to convene meeting of shareholders.
Joyou says management board examining whether to file an application for opening of insolvency proceedings.
Joyou says to postpone publication of financial report Q1.
Loss due to extraordinary writedown on shareholding in Hong Kong Zhongyu Sanitary Technology Ltd
* * *
The Chinese 'truth' is leaking out to the rest of the world...
For those with questions, here is Ulf Von Lengerich - a European analyst who has a €21 target for the company...
Last but not least, have fun recovering anything in this particular bankruptcy process.
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Ha. Finally some sense!
Their customers were distracted when they typed in the wrong name for the company - joymii
They never came back after that
The only thing that makes me laugh more than slope jokes in fight club, is huhn jokes.
There's never just one cockroach.
"has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation."
Great thing is, we'll never allow this to happen in the good 'ol US of A!
You CAN flush that Balance sheet, it's well stained
I've been involved in "what get's capitalized" discussions my entire career. If anyone in the US truly trusts a Balance Sheet of an American company they are a bit foolish.
if you trusted the Balance Sheet of a Chinese company you're a full blown retard.
Now if the TBTF US banks along with the Fed. will come clean we can get the show on the road and have a quick and dirty reset here in the USA. And then if the politicians will come clean in DC we'll really be on the road to Redemption.
Redemption?! Unless this is some kind of code name for a new scam, don't count on it.
Dude... put down the crack pipe! The TBTF and .gov will NEVER allow a true reset. They will let you and your children die a slow painful death before they suffer once.
Have a nice day!
They had to faucet down in the end.
it's a bitch when liquidity dries up, ain't it?
"Sanitary hardware". Cute.
Grohe was once a good manufacturer of fine bathroom fixtures. I guess the quality is now in the toilet like all the others.
Another good company gone to the Chinese dogs. Everything the Chinese touch goes to shit.
I can remember the first Grohe kitchen sink faucet presented to me for instalation, I think there were less parts in the space shuttle.
Don´t confuse "Hansgrohe" and "Grohe".
concrete tampons?
It went down the drain
Rim Shot!......Cymbal Crash!!
False flag... CIA... yada... yada... yada...
aaaaand it's gone
Is Germany still in the EU bailing out losers like Spain and Italy?
Why is Merkel holding Germany back?
Keep it going...
many more to go.
It's hammer time!
no joy for u.
Grohe is a very respected manufacturer of high-end faucets. One hopes there was some kind of corporate separation betwen the German and Chinese operations.
Just a trickle of what is to come...
Where's the little Dutch boy when you need him?
Oh, and don't forget, if you shake it more than twice you're playing with it.
Plop goes the turd...
Grohe is overpriced garbage.
Yep, he's dead.
Grohe is a Luxembourg company actually, not German, since it was bought by some "investors" in the late 1990ies. They still have some manufacturing in Germany though.
no rest for the wicked, that includes fed/banks
Check out the action at Lumber Liquidators
I did!
I got board!
On the floor?
Hyuk hyuk.
Don't worry, the accountants are working elsewhere. It pays well to cook books.
Gee, wonder who was selling last week? Pump and dump for the masses! Now the Chinese can have the thrill of "free" markets.
joyou is garbage, jomoo is not garbage. One is rather premium, the other is a poser. If you poke around joyou's history they have always had problems.
How is that corporate diagram different than this?
http://www.huffingtonpost.com/2012/04/27/consumer-brands-owned-ten-companies-graphic_n_1458812.html
Me Joyou long time...
Me Joyou long time... No now. . . You Go. . . Me Joyou anuva. . hee hee. . sticky lickeee.
Someone tried to BTFD at around 4 EUR
...and serves him well for disrupting the trend, hope it was FED.
Or this:
http://www.forbes.com/sites/brendancoffey/2011/10/26/the-four-companies-that-control-the-147-companies-that-own-everything/
The Four Companies That Control the 147 Companies That Own EverythingThere may be 147 companies in the world that own everything, as colleague Bruce Upbin points out and they are dominated by investment companies as Eric Savitz rightly points out. But it’s not you and I who really control those companies, even though much of our money is in them. Given the nature of how money is invested, there are four companies in the shadows that really control those companies that own everything.
Before I reveal them, some light math:
According to the 2011 annual factbook from the Investment Company Institute, there is $24.7 trillion in all the mutual funds in the world (a little less than half from the US). Based on data from the ICI, $1.24 trillion of this is directly invested in index funds, plus another $992 billion in assets beyond that $24.7 trillion in Exchange Traded Funds, which aren’t mutual funds but are index funds. That means the bulk of that money is in “active” managed funds or fund of funds.
But then consider this: the chief of hedge funds at a very large asset manager told me last week (alas, I cannot identify either) that an internal study his firm recently performed found that the vast majority of mutual funds defined as actively managed see 95% of the assets they hold determined by an index. That means just 5% of actively managed funds really are driven by the active manager’s judgment.
This less-than-active management is for two reasons: one is to maintain the fund in a style box (i.e. large value stock, medium value stocks) and comply with the reality all mutual funds are required to have a benchmark index they compare their relative performance to. The other reason is to adhere to risk metrics to which most of the fund industry is beholden. This second point is partly due to Modern Portfolio Theory (a complex topic we won’t debate here) and to the human nature that active managers tend to build portfolios close to the indexes they benchmark against to avoid really awful downward relative performance years that ends up costing them their jobs.
So of the $25.69 trillion in worldwide assets we’ve identified, $2.23 trillion are directly in indexes (ETFs and index mutual funds) with another $22.3 trillion indirectly beholden to indexes (that 95% of actively managed fund holdings said to be determined by an index).
You can see where I’m headed here. That means the real power to control the world lies with four companies: McGraw-Hill, which owns Standard & Poor’s, Northwestern Mutual, which owns Russell Investments, the index arm of which runs the benchmark Russell 1,000 and Russell 3,000, CME Group which owns 90% of Dow Jones Indexes, and Barclay’s, which took over Lehman Brothers and its Lehman Aggregate Bond Index, the dominant world bond fund index. Together, these four firms dominate the world of indexing. And in turn, that means they hold real sway over the world’s money.
While that may seem benign – they are indexers after all you may say – a financial index isn’t cut and dried like the index of a book. It’s a misperception indexers merely do some simple math like identifying the 500 largest US companies and voila! you have the S&P 500. Every indexer has a fudge factor that allows them to say one company is more “economically significant” for the index at hand than another company. To again take the S&P 500 as an example, the 502-largest company by market cap could get the nod over number 500 by size if S&P decides it wants to.
The power is even more obvious in bonds. The now-Barclays Aggregate Bond Index attempts to mirror volume of bond issuance in a region or the world, but it can’t include even a sizable percentage of all the bonds issued. Essentially, there’s a big judgment call in there in what bonds it adds to its index. A judgment that influences bond fund flows worldwide.
What does all this mean? Researchers at a desk in midtown Manhattan are the butterflies that cause the hurricanes in the markets. For instance, 37% of all index funds in stocks are in a S&P 500 index fund. That’s $370 billion directly buying and selling stocks based on when the S&P analysts decide to drop ITT from the S&P500 and replace it with just one of three ITT spin-off, Xylem, as announced on Monday. Then add on top of that all of the so-called active mutual funds aiming to beat the S&P 500 (but still reflect 95% of the S&P in their funds) who react to the change and then all of the hedge funds who trade ahead of time trying to guess what S&P may drop or add.
I don’t have a grudge against any indexer (and full disclosure, I’ve done work for some of them). And the folks at McGraw-Hill don’t seem to spook people the way George Soros manages to. But when you discuss power in the world markets, the answer isn’t what you think it is.
Thanks, Ed.
Power and Capital was similarly Concentrated in 1929......
And ?
The True "Power in World Markets" is Human Nature.
When it exerts itself UP or DOWN, Nothing Can or Will Stop it.
As the True Master said Long Ago:
"Nowhere does History Repeat itself more than on Wall Street"
Indeed.
Balance sheet manipulation? That is called accounting in the US.
THE TIME IS NOW! ONCE YOU SEE "ACCOUNTING" HONESTY OF FINANCIAL STATEMENTS RAISE ITS UGLY HEAD - THEN THE ENGINEERED IMPLOSION - ALA ENRON - IS VERY NEAR AT HAND!!
MARK YOUR CALENDARS!
Review my past posts the contagion is spreading world wide economic collapse by late fall / winter this year.
Please check the japanese owner of Grohe and Joyou...f...no possibility for me to short it
http://v4.eir-parts.net/v4Contents/View.aspx?template=announcement&sid=2...
So, how long was Gartman again?
So...
How much else of the 'China Miracle' is fraud or the result of the Oligarch's transfer of public wealth to fund China's rise???
They just LOVE cheating, those buggers.