If You Let 23-Year-Olds Sign Off on Audits, You’re Gonna Have a Bad Time
On January 24, short seller Hindenburg Research dropped a report called Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History, in which Hindenburg accuses Indian conglomerate Adani Group of engaging in “a brazen stock manipulation and accounting fraud scheme over the course of decades,” among other things. A […]
Focus Media Management: Muddy Waters Has It All Wrong, Should Be Sued For Being a Rumor Monger
Focus Media Chief Financial Officer Kit Low disputed Muddy Waters’ claims on a conference call Tuesday with analysts, saying that the firm’s report misinterpreted LCD-display numbers and financial data. He said Muddy Waters concentrated largely on Focus Media’s mergers and acquisitions, but the company hasn’t made any “major acquisitions in the past three years” because it is putting more emphasis on its core business. Focus Media Chief Executive Jason Jiang criticized short-sellers in a message posted on his verified account on China’s Sina Weibo microblog service. “Why isn’t anyone suing these short sellers who are just spreading malicious rumors everywhere?” the message said. “These people should be punished according to the law!!!” [WSJ]
Patrick Byrne May Say Something That Will Antagonize You
The Patrick Byrne Express (via Segway, natch) pulled over from its nationwide auditor search to pen the latest triumph in his quest to refute every Overstock/Patrick Byrne hater on the planet.
Patsy’s latest letter informs us of the settlement that Overstock has reached with Rocker Partners, one of those short-selling hedge fund haters, for $5 million.
His masterpiece opens with “The good guys won” and then rambles on to tell us how he feels about pretty much everyone in financial media. And that’s what this was really all about. It wasn’t about the money, you fools. This was about exposing the anti-Overstock/Patrick Byrne contingent:
What is of vastly greater significance than this $5 million payment, however, is an examination of the cover-up conducted by elements of the New York financial press. Taking the lead was CNBC, which spent a great deal of airtime downplaying the significance of this suit, vilifying me, and smearing Overstock.
Apparently, this is just the beginning. Prime brokers, sounds like you’re next.
And just so you know, PB and his company don’t give a damn if you, the SEC, or anyone else for that matter gets bent out of shape about them spreading the truth. As Floyd Norris rehashes some of the trubs going on in casa de Overstock, he notes this little treasure from the company’s unreviewed 10-Q:
Public statements we or our chief executive officer, Patrick M. Byrne, have made or may make in the future may antagonize regulatory officials or others.
We and our chief executive officer, Patrick M. Byrne, have from time to time made public statements regarding our or his beliefs about matters of public interest, including statements regarding naked short selling. Some of those public statements have been critical of the Securities and Exchange Commission and other regulatory agencies. These public statements may have consequences for us, whether as a result of increased regulatory scrutiny or otherwise.
Sounds like fighting words to us. Go ahead and bring it, SEC. Patrick Byrne will be waiting.
Overstock Claims Victory [Floyd Norris/NYT]