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"Anonymous" Enters Securities Analysis: Alleges Hong Kong's HK$ 8.5 Billion Chaoda Is Next Sino Forest

Tyler Durden's picture




 

Wondering why you may not have heard of hacking collective Anonymous for a while? Because, as it appears, the ad hoc organization has been busy assembling Anonymous Analytics, a public equity research entity (and we venture to guess focused mostly on the short side) whose motto is "Acquiring information through unconventional means" and follows up with "You should have expected us." Think of them as Muddy Waters on steroids: no regulation, no supervision, no accountability - just pure content, and credibility-driven merit (or, of course, lack thereof): a model which if validated will totally revolutionize the field of public company research. Well, someone who certainly should have expected AnonAnalytics is Chaoda Modern Agriculture, a HK$ 8.5 billion market cap company, or on par with Sino Forest from its pre-fraud days, which as Anon alleges is one of "Hong Kong Exchange’s largest, and longest running frauds." As the below report demonstrates, Anon has presented a serious case to prove just that stunning allegation, and if ultiamtely validated, the outcome for stock longs will be very unpleasant: "Theoretically, Chaoda may be worth HK$0.60 per share (currently Hk$2.50) derived from a blended NAV and DDM approach. However, based on the evidence in this report, as well as information we have decided not to release, we believe Chaoda may face delisting." If proven correct, this report will have an even greater impact on capital markets than Muddy Waters take down of Sino Forest, as it will finally integrate the two formerly completely disparate worlds of hacking and software analysis, opening up a world of very concerning possibilities for the world's public companies.

Key highlights:

Chaoda has an extensive history of deceiving investors and shareholders. Since its IPO, there have been several resignations by auditors, executives, and directors. We provide proof that management has consistently lied about the reasons behind these resignations. We further show that management has time after time misled investors about the Company’s capital requirements. To this end, management has assured shareholders that the company was sufficiently capitalized, only to tap the capital markets – often within several weeks.

 

Rounds of financing are required because Chaoda is overstating its cash balance, exaggerating its revenue, and falsifying its financial statements. We show that reported revenue numbers make no sense and provide statistical proof as to the improbability of Chaoda’s reported margins.

 

Much of the money that is raised is transferred out of the Company by management and third parties. These transfers are carried out under the cover of grossly inflated capex spending, and related party transactions. We provide proof that payments made to a ‘major supplier’ owned by the CEO are simply being transferred to a shell company with no business operations and de minimis assets.

 

Furthermore, we show that the CEO has used shareholder money to invest in risky projects without commensurate returns. One of these projects was a poorly operated orange plantation (Asian Citrus) that even Pepsi Co. found too risky. While this project robbed shareholders of high returns, they enriched the CEO through similar related party transactions.

 

Finally, we show that Chaoda is paying another fraudulent company to provide it with positive marketing exposure. In a bizarre twist worthy of a mystery novel, this saga involves Nobel laureates and some of the Western world’s most renowned academics.

 

Theoretically, Chaoda may be worth HK$0.60 per share (currently Hk$2.50) derived from a blended NAV and DDM approach. However, based on the evidence in this report, as well as information we have decided not to release, we believe Chaoda may face delisting.

Full report (pdf)

 

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Mon, 09/26/2011 - 16:27 | 1712768 Deadpool
Deadpool's picture

more bear raids with global reach

Mon, 09/26/2011 - 16:29 | 1712779 trav7777
trav7777's picture

just de-list China

Mon, 09/26/2011 - 16:32 | 1712794 magpie
magpie's picture

the way things are going, people would even buy into a CCP IPO - a fine ETF idea

Mon, 09/26/2011 - 16:47 | 1712867 Pladizow
Pladizow's picture

Has Anon learned to fight crime with crime?

Reminds me of the Bat-Man movie where the Joker lights the mountain of cash on fire - http://www.youtube.com/watch?v=2TJ3Yv_vgUc

Mon, 09/26/2011 - 22:07 | 1713640 Michael
Michael's picture

LULZ = For Shits and Giggles

Anonymous has no organizational structure and no leader. It's tha kind of thing that makes the oligarchs heads explode. Sort of like the Norwegian Knights Templar movement.

Mon, 09/26/2011 - 22:49 | 1713705 CrazyCooter
CrazyCooter's picture

I disagree; I think they are mostly, if not all, "insiders". The internet has largely been to the benefit of the little guy, as the "elite" controlled the media.

Doesn't it make sense that the "elite" can benefit from the internet as well?

What better way to (1) take out a company that won't toe your line, (2) destroy a person's credibility, or (3) herd the lemmings over a cliff once some street cred is provided. On top of all that, I don't doubt the information is accurate; I am saying the vehicle that is anoymous has intentions which are not clear at this time.

Eventually there will be the internet crack down once the dirty work is done, the money made, countries broken, and the pleebs plunged into information darkness.

Regards,

Cooter

Tue, 09/27/2011 - 00:11 | 1713806 Pink
Pink's picture

don

Not trying to pick you're comment apart, I agree that this report could be released by an insider with the intention of torpedoing competition. However, to assert that the "vehicle that is anonymous has intentions that are unclear" simply makes no sense. By it's nature, a vehicle can't have an intention. The intention is solely attributed to the individual presently acting upon a vehicle. In the case of an anonymous collective, we can only speculate on intentions. And for the most part, the acts of the Anonymous collective usually is just for the lulz or social justice. Personal gain is eliminated outright.

Thu, 10/06/2011 - 01:09 | 1744344 CrazyCooter
CrazyCooter's picture

When I was a kid, we used to put shit in a paper bag and put it on peoples front porches, set it on fire, bang the door (usually someone known by someone involved).

To my surprise, no one ever fell for it; they side-scootted it off the wood to the ground and went back in side.

Why does this matter? Your post is a flaming bag of shit. I will just let it burn. Those old fuckers, they had it all figured out. Not sure why kids (like me) couldn't ever figure that out...

Please drive through.

Regards,

Cooter

Mon, 09/26/2011 - 18:09 | 1713090 DormRoom
DormRoom's picture

if zerohedge continues to publish anon reports, they will be visited by the FBI.  It's fairly clear there's a new hedge fund strategy (hedge fund using leverage + "biased investigators that use distort and short PR"):

category: Anon short arbitrage in the options market.

Mon, 09/26/2011 - 18:07 | 1713091 DormRoom
DormRoom's picture

if zerohedge continues to publish anon reports, they will be visited by the FBI.  It's fairly clear there's a new hedge fund strategy: anon short arbitrage in the options market.

Mon, 09/26/2011 - 18:47 | 1713164 stacking12321
stacking12321's picture

what you say!

you stay on your side of border, round-eyes, and we stay on ours!

Tue, 09/27/2011 - 01:54 | 1713886 TravsMom
TravsMom's picture

I would like to delist you, trav

Mon, 09/26/2011 - 16:57 | 1712915 Panafrican Funk...
Panafrican Funktron Robot's picture

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/26/bloomberg_articlesLS4B6Y6TTDSM.DTL

Story initially broke back in May by Next Magazine.

http://hk.next.nextmedia.com/template/next/front.php

Just in case anyone is suffering under the delusion that this company isn't a fraud.

Mon, 09/26/2011 - 16:28 | 1712769 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Set them loose on Fort Knox. Fort Knox has ethernet, right?

Come on, think big.

Mon, 09/26/2011 - 16:32 | 1712800 spiral_eyes
spiral_eyes's picture

I'd love to see what they make of the US 30-year. Here's something for them to start with:

Benny's Fabulous Price-Stability Racketeering Band

Mon, 09/26/2011 - 16:42 | 1712844 fishface
fishface's picture

Yeah and the what about the FED

Bernank wants to spy

http://www.zerohedge.com/news/here-comes-fiattackwatch-bernanke-goes-wat...

 

He deserves the same

Mon, 09/26/2011 - 16:28 | 1712774 ReallySparky
ReallySparky's picture

Oh goody, maybe they can get into the FED or GS.  This might get very interesting...

Mon, 09/26/2011 - 16:45 | 1712849 Nascent_Variable
Nascent_Variable's picture

Interesting indeed.

Anonymous is such a huge collective, it probably has people in every major player.  If interns who spend their spare time on the chans start rummaging for sensitive documents at work, you could see some major news breaking out of this group on a regular basis.

Mon, 09/26/2011 - 16:29 | 1712780 Comay Mierda
Comay Mierda's picture

now I'm really starting to think "Anonymous" is a CIA front

Mon, 09/26/2011 - 16:40 | 1712835 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Yeah. When AA decides to bust the multitude of evil deals done by GS, JPM, et al, then I might listen. China-bashing is rather passe.

Mon, 09/26/2011 - 16:44 | 1712857 Deadpool
Deadpool's picture

American Airlines? Alcoholics Anonymous? little batteries?

Mon, 09/26/2011 - 18:19 | 1713112 dark pools of soros
dark pools of soros's picture

you all thought LulzSec was CIA too.. 

Mon, 09/26/2011 - 23:27 | 1713750 CrazyCooter
CrazyCooter's picture

I don't think anyone can assert anything with certainty and it is clearly foolish to dismiss the notion.

Regards,

Cooter

Mon, 09/26/2011 - 16:45 | 1712845 dwdollar
dwdollar's picture

Unfortunately, entities like Anonymous can be easily infiltrated by the CIA.  Fortunately, their decentralized nature means they can never be fully compromised.  You should never fully trust or fully distrust an entity like Anonymous.  One release may be the truth, the next release may be complete dis-info.  Any release is what it is.  You must make up your own mind.  One thing is for sure, you're not going to receive this kind of material on the Thought Vacuum.

Mon, 09/26/2011 - 20:48 | 1713494 jekyll island
jekyll island's picture

Screw these anonymous short sellers who hide behind "research" to justify their attempts to profit by negative attacks.  I laugh when they try to describe their work as altruistic.  They are the next generation pump and dump scamsters, or should I say short and extort scamsters.   They don't care if you get hurt, they are running a money making scheme.  

Tue, 09/27/2011 - 16:52 | 1716245 Habspurg
Habspurg's picture

If you don't believe in the truly free market and the unfettered exchange of opinions, what are you doing on ZH?

Tue, 09/27/2011 - 00:24 | 1713811 Lord Koos
Lord Koos's picture

Really, how easy to infiltrate them? 

Mon, 09/26/2011 - 16:43 | 1712850 unclebill
unclebill's picture

Who knows, soo far they said that the FEDS arrested anonymous people, but they never release any faces at all.....hmmm

Tue, 09/27/2011 - 22:12 | 1717173 hedgehogging
hedgehogging's picture

Could it be because they are anonymous??? LOL!!!!

Mon, 09/26/2011 - 16:34 | 1712782 GeneMarchbanks
GeneMarchbanks's picture

Fraud-De-Jour?

AA is an unfortunate abbreviation for such a fine organization.

Mon, 09/26/2011 - 16:30 | 1712787 j0nx
j0nx's picture

They would just scour the earth looking for these guys while the info they discovered would never be acted on. Punish the ones doing the whistle blowing and the truth saying and let the criminals continue to loot. That's how we roll around these parts yo.

Mon, 09/26/2011 - 16:35 | 1712809 nyse
nyse's picture

Cool!

Mon, 09/26/2011 - 16:35 | 1712812 zorba THE GREEK
zorba THE GREEK's picture

All Chinese companies are suspect. 

Mon, 09/26/2011 - 16:36 | 1712818 Aeonios
Aeonios's picture

I really do hope anonymous gets into the business of whistleblowing on market fraudbezzlement. That would force sovereigns everywhere to put up "great firewalls" and ensure that the pirate party wins majority vote in half the countries in europe.

Mon, 09/26/2011 - 16:36 | 1712820 s2man
s2man's picture

What? No link?

Mon, 09/26/2011 - 16:37 | 1712822 SheepDog-One
SheepDog-One's picture

The sphincter pucker factor just pegged 100 on Wall St.

Mon, 09/26/2011 - 16:37 | 1712825 Smiddywesson
Smiddywesson's picture

Oops, there goes the Internet.  The Boyz are going to throw the switch.  We can't have this kind of light shined into their closets.

Mon, 09/26/2011 - 16:38 | 1712826 PulauHantu29
PulauHantu29's picture

Just the facts, Ma'm, just the facts.

Mon, 09/26/2011 - 16:39 | 1712829 Where My Dawg At
Where My Dawg At's picture

These "Anonymous" dudes do so many douchebaggy things I think it will be hard for them to be taken seriously outside of their own circles.

Mon, 09/26/2011 - 16:43 | 1712853 Waffen
Waffen's picture

there are 6 billion people.  All it takes to be an anonymous front is to do something and say your anonymous.

Mon, 09/26/2011 - 20:05 | 1713373 mvsjcl
mvsjcl's picture

One man's douchebaggery is another man's ...errr... ummm... forget it.

Mon, 09/26/2011 - 16:40 | 1712833 Shizzmoney
Shizzmoney's picture

I hope Fort Knox has ethernet when they get in there.....b/c they sure as hell aint gonna find any gold, thats for sure!

Mon, 09/26/2011 - 20:50 | 1713499 jekyll island
jekyll island's picture

Yes they will, it will be plating over the tungsten bars.  

Mon, 09/26/2011 - 16:41 | 1712840 spanish inquisition
spanish inquisition's picture

"Acquiring information through unconventional means" and follows up with "You should have expected us."

I did not expect Anonymous Analytics.

Mon, 09/26/2011 - 16:46 | 1712868 mesje
mesje's picture

No one expects Spani.... ee... I mean Anonymous Analytics!

;-)

Mon, 09/26/2011 - 18:35 | 1713142 bugs_
bugs_'s picture

our three weapons are.....

Mon, 09/26/2011 - 16:44 | 1712856 mynhair
mynhair's picture

When will they move on to NFLX?

Mon, 09/26/2011 - 16:45 | 1712858 williambanzai7
williambanzai7's picture

WISDOM OF HU FLUNG DUNG

Mon, 09/26/2011 - 16:44 | 1712859 bankruptcylawyer
bankruptcylawyer's picture

wheres reports like this when the stock was 5 bucks in mid april?

 

seriously , muddy waters, than these guys. enough of this crap. i'm not a short speculator, i've learned that unless youre running the game.....youre getting runned over by it.

Mon, 09/26/2011 - 16:46 | 1712866 fyrebird
fyrebird's picture

Anon running a short racket? This is likely to become bloody, and fast. We're going to find shortly out if anyone out there can bring any kind of game.

Mon, 09/26/2011 - 16:57 | 1712919 dwdollar
dwdollar's picture

This would be a great funding mechanism for Anon.

Mon, 09/26/2011 - 18:21 | 1713115 dark pools of soros
dark pools of soros's picture

any brokers take bitcoins??

Mon, 09/26/2011 - 23:32 | 1713760 CrazyCooter
CrazyCooter's picture

I never understood the fascination with BitCoin. I mean, doesn't it violate thousands of years of monetary history? Christ, at least I can wipe my ass with fiat money. I never thought there would be a worse money than paper money, yet here we are with the 100% electric money!

Humans never cease to suprise me ...

Regards,

Cooter

NOTE: I wasn't implying that DPoS was advocating BitCoin, just tossing that out there whilst the fiat system tightens up and spins faster...

Tue, 09/27/2011 - 16:55 | 1716258 Habspurg
Habspurg's picture

You've got it backwards. The major fiat currencies are produced on the whim of a keypress. Not so with bitcoin. If you want to wipe something with a bitcoin, print it out.

Wed, 12/28/2011 - 17:43 | 2017280 dark pools of soros
dark pools of soros's picture

bitcoin is trying to be a virtual hard currency..  yes an oxymoron and Moore's law and other factors will be the death of it most likely.

 

Mon, 09/26/2011 - 16:47 | 1712869 The4thStooge
The4thStooge's picture

i wasn't expecting this...

Mon, 09/26/2011 - 16:46 | 1712870 Racer
Racer's picture

and if they look at the S&P 500... that will be 5000 companies that should be trading at a fraction of their current value

Mon, 09/26/2011 - 16:48 | 1712873 Cheesy Bastard
Cheesy Bastard's picture

Hi, my name is Cheesy and I'm an...oops, wrong room.

Mon, 09/26/2011 - 16:48 | 1712874 Joebloinvestor
Joebloinvestor's picture

The begining of the end will be when they start posting the outraegeous compensation and holdings of both wall street and government criminals.

Expense reports would be fun.

Mon, 09/26/2011 - 19:55 | 1713343 zoomer
Mon, 09/26/2011 - 16:54 | 1712904 Zola
Zola's picture

At least i would expect more interesting things to come out of this than broker research... If they can hack into fraudulent companies and expose it kudos to them. I just hope this is not another short and distort scheme... why dont they start by hacking alfred little ?? 

Mon, 09/26/2011 - 16:59 | 1712913 IMA5U
IMA5U's picture

dood...wish we heard about this a few weeks ago....

 

also, short ideas that have options US investors can trade are far more useful.  naked shorting spivvy overseas equities is scary

do they have bonds and if so how do they trade?

 

Mon, 09/26/2011 - 16:58 | 1712914 bbq on whitehou...
bbq on whitehouse lawn's picture

If  morality and ethics are not restored soon a new world of piracy will begin.

We will go from simple harmless hacking and data gathering to armed attacts to retreve data.  Raid the big yachts seal the ipads and go.

Why mess with math when you can send a 30 man crew to grab data at a fraction of the cost.

If this "model which if validated will totally revolutionize the field of public company research."

If we do not value anything but money and its power then we value nothing. Nothing is what we will be left with.

While i cheer the spirit i fear its children.

Morality is more then taboo its a choice of human action, without choice we are not masters but slaves.

Mon, 09/26/2011 - 23:37 | 1713764 CrazyCooter
CrazyCooter's picture

I think you fail to realize that espionage has been the cornerstone of competitive business since ... well, competitive business. Do you genuinely thing that corporations do not have teams of folks, spies, buy secrets/info on the black market, and you name it to get low cost innovation or competitor secrets?

Name me a company in the DOW index that doesn't have the funds to hire a good looking gal of questionable moral character to casually meet the geek of her dreams who just so happens to be the admin of corporate/executive mail servers of a competitor. Nah, could NEVER happen.

Regards,

Cooter

Tue, 09/27/2011 - 06:53 | 1714127 trx
trx's picture

Here's a list of 500 companies to choose from:

 

Fortune 500 Companies Leaked 20GB of Sensitive Information

Mon, 09/26/2011 - 17:34 | 1713014 Fanatic
Fanatic's picture

From the disclaimer:

"You should assume these type of statements, expectations, and projections may turn out to be incorrect. Just ask the Fed."

LOL.

Mon, 09/26/2011 - 17:36 | 1713019 Texas Ginslinger
Texas Ginslinger's picture

This scam sounds like Amway.

Chaoda putting out any worthwhile products and/or services..??

 

 

Mon, 09/26/2011 - 17:50 | 1713044 Godisanhftbot
Godisanhftbot's picture

 this pos is already down over 90% to $1 hk, do we nreally need a report to know its a garbage can?

 

report just in time to cover their shorts into new money,

Mon, 09/26/2011 - 18:00 | 1713073 Absalon
Absalon's picture

The sound you hear is a barn door closing.

Mon, 09/26/2011 - 18:05 | 1713088 I am a Man I am...
I am a Man I am Forty's picture

"as well as information we decided not to release" 

 

gay

Mon, 09/26/2011 - 18:21 | 1713110 Jack Kreuz
Jack Kreuz's picture

I'm wondering how many investors lost money after following Jim Rogers' advice on China, after he pumped it on TV, in his book "A bull in China," and with his european certificates based on the "Rogers China Equity Growth Index," which had 3% of its assets in Chaoda.

Mon, 09/26/2011 - 18:28 | 1713130 Central Bankster
Central Bankster's picture

It will be interesting to see how the market prices this new information.

Mon, 09/26/2011 - 18:37 | 1713145 bugs_
bugs_'s picture

When I started shorting in my sleep I realized I needed to join ShortAnon.

Mon, 09/26/2011 - 18:45 | 1713161 Jack Kreuz
Jack Kreuz's picture

Anonymous Analytics is making the false assumption that China Green is not a fraud.

Mon, 09/26/2011 - 18:51 | 1713176 TJ00
TJ00's picture

The people I feel sorry for in all this are the Cyberpunk writers, back in the day they could craft a story about rebels fighting the good fight but now reality has eclipsed all that, well done Anon, keep it up.

Mon, 09/26/2011 - 20:17 | 1713396 batz
batz's picture

 

This is totally fucking rad.

Soooo expected this.

The only thing I expected that didn't show up in this report is ascii art down the margins that spells "PH34R B0W"

 

Mon, 09/26/2011 - 20:17 | 1713398 batz
batz's picture

 

This is totally fucking rad.

Soooo expected this.

The only thing I expected that didn't show up in this report is ascii art down the margins that spells "PH34R B0W"

 

Mon, 09/26/2011 - 20:18 | 1713402 artx00
artx00's picture

the bernanke is ....anonymous. That would create the necessary diversion

Mon, 09/26/2011 - 20:48 | 1713493 KinorSensase
KinorSensase's picture

Dear Anon,

Take down JPM and the silver shorts.

Sincerely,

Peejo

Mon, 09/26/2011 - 21:34 | 1713587 Shazam
Shazam's picture

I am short DGW and its been halted almost 6 months with no information. The problem with this hit pieces is they don't update them after a halt.

Mon, 09/26/2011 - 23:10 | 1713732 JuicedGamma
JuicedGamma's picture

Should we be surprised? The Chinese are doing what they do best copying American shit, in this case Enron.
Good work lads!

Tue, 09/27/2011 - 17:02 | 1716266 Habspurg
Habspurg's picture

.

Tue, 09/27/2011 - 22:22 | 1717198 hedgehogging
hedgehogging's picture

This kinda feel like the movie The Taking of Pelham 123. Create a terror attack and profit from gold longs instead of ransom!! Will we see more of this? 

 

Tue, 12/27/2011 - 04:58 | 2012851 hamza123
hamza123's picture

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suryamalam's picture

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Sun, 09/23/2012 - 21:43 | 2823231 nastaking
nastaking's picture

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