Uh oh. The market seems to have caught another case of Sino-situs on Friday.
Introducing Yuhe International:
…a supplier of day-old chickens raised for meat production, or broilers in China. Our day-old broilers are sold, through third party distributors or directly, to broiler farms and integrated chicken companies, which engage in the breeding, hatching, farming, and food processing of broilers, for the purpose of raising them to market-weight broilers.
That’s from the company’s Bloomberg profile.
The stock — current market cap $24.5m (chicken feed, ahem) — was suspended on Nasdaq pending a request for further information. It has now fallen 85.04 per cent on the year, with the vast majority of the price decline coming this week specifically:
Featured on Seeking Alpha on Thursday, the report highlighted the following concerns:
Our due diligence findings regarding Yuhe International (YUII) raise serious red flags.
Our most important findings:
* We have reason to believe that YUII has misrepresented the details surrounding its acquisition of 13 breeder farms. More specifically, we believe we have compelling evidence that YUII never reached or executed an agreement with the owner of the Dajiang farms, as stated in December 2009,.
This leads us to believe that the $12.1 million deposit allegedly paid to acquire the farms may have been misappropriated.
* We have begun to question the details surrounding the acquisitions of other breeder farms allegedly consummated by YUII.
* SEC filings reveal a host of other red flags. Over the next few days, we will disclose more information that will strengthen these findings as well as discredit the supportive documents that YUII management supplied to rebut the information we uncovered. Given our findings, we deem YUII shares to be uninvestible.
Doesn’t take much more to rumble a Sino-focused stock nowadays.
Paulson, lumbered with Sino-Forest - FT Alphaville
Sino-Forest coverage - FT Alphaville
SEC to investors re Chinese reverse mergers: don’t be stoopid - FT Alphaville
Nasdaq gets flacktastic over dodgy company’s bell-ringing – FT Alphaville