I wanted to highlight a pretty negative piece from Citron on Xinhua Finance Media (NASDAQ:XFML). Make sure you read it before stepping into the stock.
One person rarely makes a co, but these things tend to make investors cautious. I personally still think XFML may be a legit operation. They made Mr. Singhal resign and have appointed a internal committee to review the corporate governance issues. That's definitely good.
Anyway, despite all the negativity it looks like the stock managed to put together a nice bounce after the open. Hope some of you particpated in the move. Would consider taking at least partial profits a prudent move here.
NC
One person rarely makes a co, but these things tend to make investors cautious. I personally still think XFML may be a legit operation. They made Mr. Singhal resign and have appointed a internal committee to review the corporate governance issues. That's definitely good.
Anyway, despite all the negativity it looks like the stock managed to put together a nice bounce after the open. Hope some of you particpated in the move. Would consider taking at least partial profits a prudent move here.
NC
3 comments:
Citron Research is also known as StockLemon. It is my opinion that they do hatchet jobs on selected stocks which they short prior to making a report. They have been known to make misleading statements in the past. Also of interest is that they decry companies which supposedly have questionable or no business contact, yet they themselves do not and have not, to the best of my knowledge, had any address or phone number published or indicated on their own website. Use extreme caution when reading their "unbiased" reports.
The whole thing appears more and more a conspiracy theory. Some people are purposely spinning the story.
The ex-CFO may or may not have had some issues himself. That’s not related to XFML. XFML may or may not have the disclosure issue related to what the ex-CFO did, not what XFML did. Even I assume the worst case, I just could not understand how big this story has managed to make – just blown out of proportion. Just as the CIBC analyst pointed out, whatever happened would not affect the fundamentals – the secular rapid growth of the advertising business in China and XFML is well positioned.
I suggest investors read a more balanced report from Reuters (update 4, released 8:01 pm EDT Monday May 21). Here is the link:
http://www.reuters.com/article/newIssuesNews/idUSN2129163920070522
read today's story:
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070522:MTFH32775_2007-05-22_14-30-07_N21291639&type=comktNews&rpc=44
all this drama in XFML seems to be a bunch of hooplah. reporters trying to turn silver into platinum.
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