Grizzly had a short-report out on this stock. I went through it, I think they're wrong because Grizzly claims profits are fake, but at the same time the company is able to do massive buybacks and dividends...Still, do your own due diligence.
Is it worrying to you that they both use the same accounting firm, specifically the one Grizzly called out as having a track record of auditing fraudsters? (Deloitte Touche Tohmatsu Certified Public Accountants LLP)
Nope. Grizzly has a reputation now of exaggerating risks into "omg this is a fraud" and I'm quite sure Grizzly makes money on the immediate drop that happens post-short report, then they cover and move on.
Their reports lack fundamental problems. They are far from a Hindenburg type short-seller.
With the GOTU fraud this firm also wasn't found as complicit by the SEC or the PCAOB(china). They were just bad at their job, and from what I understand, outsourcing their work. I think post- GOTU they would have probably had to step up their operations.
This being said, I haven't made this a full-sized 10%-15% position. Keeping it small at around 5%. (which to me is small).
I actually meant that QFIN and JFIN had the same accountants. Good to know that the auditing firm isn’t complicit, despite recent failures.
Grizzly clearly has a conflict of interest. The one thing I couldn’t rationalize was the discrepancy between SEC and SAIC net income fillings. That difference of 100x was quantified and not a matter of opinion or perspective. It changes the story from good to very bad company. I must be missing something there.
That difference of 100X doesn't make sense to me solely because if that were the case they wouldn't have been able to pay the dividend or do the buyback. Which is verifiable on the exchange.
So where is that money coming from if they are really generating 100X less...
I am not a super professional "financial shenanigans" expert. My thesis is that the company is super undervalued (probably very likely due to short-report) which I think based on Grizzly's previous research, and their actual allegations, don't make sense.
BUT! I have a half-sized position to account for that risk. If this thing is not a fraud, which I don't think it is, it should trade at EV/EBIT 10-12 which puts upside at like 2X.
If short report is real its probably a complete loss of capital. I think its real because the cash flows are coming back. which leans me to think we are more on the way to a 2X...
Grizzly had a short-report out on this stock. I went through it, I think they're wrong because Grizzly claims profits are fake, but at the same time the company is able to do massive buybacks and dividends...Still, do your own due diligence.
You should check out Nasdaq: JFIN.
I did, I like QFin more
Is it worrying to you that they both use the same accounting firm, specifically the one Grizzly called out as having a track record of auditing fraudsters? (Deloitte Touche Tohmatsu Certified Public Accountants LLP)
Nope. Grizzly has a reputation now of exaggerating risks into "omg this is a fraud" and I'm quite sure Grizzly makes money on the immediate drop that happens post-short report, then they cover and move on.
Their reports lack fundamental problems. They are far from a Hindenburg type short-seller.
With the GOTU fraud this firm also wasn't found as complicit by the SEC or the PCAOB(china). They were just bad at their job, and from what I understand, outsourcing their work. I think post- GOTU they would have probably had to step up their operations.
This being said, I haven't made this a full-sized 10%-15% position. Keeping it small at around 5%. (which to me is small).
I actually meant that QFIN and JFIN had the same accountants. Good to know that the auditing firm isn’t complicit, despite recent failures.
Grizzly clearly has a conflict of interest. The one thing I couldn’t rationalize was the discrepancy between SEC and SAIC net income fillings. That difference of 100x was quantified and not a matter of opinion or perspective. It changes the story from good to very bad company. I must be missing something there.
That difference of 100X doesn't make sense to me solely because if that were the case they wouldn't have been able to pay the dividend or do the buyback. Which is verifiable on the exchange.
So where is that money coming from if they are really generating 100X less...
I am not a super professional "financial shenanigans" expert. My thesis is that the company is super undervalued (probably very likely due to short-report) which I think based on Grizzly's previous research, and their actual allegations, don't make sense.
BUT! I have a half-sized position to account for that risk. If this thing is not a fraud, which I don't think it is, it should trade at EV/EBIT 10-12 which puts upside at like 2X.
If short report is real its probably a complete loss of capital. I think its real because the cash flows are coming back. which leans me to think we are more on the way to a 2X...
Hello, I'd like to pledge for your yearly subscription. Is this comment enough, or do I have to do something else?
Thanks!
Why QFIN vs FINV (which i prefer considering Philipines & indonesia exposure) ?
How do you feel about the management buying back stock in the high while insiders were selling?