I sold this morning at 86 cents, but only as a stop loss (or preserve profit, with my average price at about just over 60 cents) measure, not because I believe the reports. I hope to be able to buy back at bargain prices once the company issues a response. From what I see, I don't think the report has much meat, and a lot of it seem to be conjectural and a case of trying to put 2 and 2 together to draw their own conclusions. I'm confident Minzhong's management will be able to clear this up, and if so, launch legal proceedings against Glaucus but let's wait and see for their response. Unfortunately this morning has shown how unpredictable life can be at times.
I don’t follow Minzhong ( considered one of the better run S-Chips ? ), but I can’t believe it’s price can drop 50% within few hrs just because of a mass media report like this ? Either it’s a concerted effort to push price down or the full report is very damaging ? Hope Minzhong can rebuke the allegations quickly , and then sue them. Olam did that. This is a time when top flight CEOs / CFOs are appreciated for damage control. That’s what they are paid for. Not vested.
Singapore, 26 August 2013 – It has been brought to the attention of China Minzhong Food Corporation Limited ("the Company") that Glaucus Research Group (“Glaucus”) has released a report (“Report”) regarding certain affairs of the Company.
The Report has caused a substantial decrease in the share price of the Company this morning and Glaucus has openly stated that Glaucus and those acting in concert with it are short sellers who will profit from the decline of the
Company’s stock price.
The Company is in the process of reviewing the Report and will provide its response shortly. The Company will take all necessary steps to defend its reputation and will not hesitate to take legal action against those who put up and disseminate false or misleading statements without due
regard to their truth and for the purpose of inducing others to deal in securities.
In the meantime, the Company has halted the trading of its stock and reserves all rights against the aforesaid parties.
Glaucusresearch made money by shorting counters, very much similar like what muddy waters do. There is a interview in the edge Singapore few weeks ago about them locking sight on 1 s-chip in Singapore. Didn't expect it to be CMZ. But they mention they have on target a few other s- chips from HK and Singapore, so do watch out
greenrookie wrote: Glaucusresearch made money by shorting counters, very much similar like what muddy waters do. There is a interview in the edge Singapore few weeks ago about them locking sight on 1 s-chip in Singapore. Didn't expect it to be CMZ. But they mention they have on target a few other s- chips from HK and Singapore, so do watch out
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