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PR Newswire
07-06-2017, 05:01 PM
http://www.barrons.com/articles/sohn-hon...1496817034
Block presented a five-point thesis on why he's short on Man Wah:
1. Man Wah has undisclosed debt that shows the company is likely less profitable and generates much less free cash flow than it reports.
2. Man Wah has inconsistencies in its taxes, which Block alleges is a strong indicator of fraud.
3. Man Wah has a subsidiary in Macau that books over half of consolidated net profits. Block alleges that, at best, is an indicator of possible tax evasion and, at worst, used to overstate profits.
4. Block also casts doubt on its China sales growth story.
5. Block says data casts doubt on Man Wah's export sales.
Block presented a five-point thesis on why he's short on Man Wah:
1. Man Wah has undisclosed debt that shows the company is likely less profitable and generates much less free cash flow than it reports.
2. Man Wah has inconsistencies in its taxes, which Block alleges is a strong indicator of fraud.
3. Man Wah has a subsidiary in Macau that books over half of consolidated net profits. Block alleges that, at best, is an indicator of possible tax evasion and, at worst, used to overstate profits.
4. Block also casts doubt on its China sales growth story.
5. Block says data casts doubt on Man Wah's export sales.