China Minzhong Food Corporation

[weijian]

Hi Buddies,

Update: Ok, I've browsed through the report. It's more entertaining than enlightening really. For what it's worth, my original post after the break.

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There's a report out on Chaoda Modern Agriculture (listed on the HKex) by one of those guerilla shortists groups that's making it's way around.

China Minzhong is mentioned in the report as having the same business operating model- NOT that the Business Model is fraudulent but that it is susceptible to fraud and corruption.

So the report may be an alternative read into the business that CMZ is into and from there, Buddies interested/vested may want to do your own fact-checking/independent analysis.

Report here.

(not vested)

hi kazukirai, thanks for the link. I guess this is a major reason for the huge pricedrop over the last 3 weeks. It's an entertaining and enlightening report as well - enlightening in the sense that we can make use of parts of the report to test/benchmark against CMZ.

To quote part of the report here -
' While our research indicates that there may be a select few legitimate companies in this space with good corporate governance practices, we do not believe Chaoda is part of this group'

GIC has a 17% stake at CMZ and so it should have better corporate governance? (not that it matters very much if we remember what happened at ABC learning)

Let's see how the double whammy at Chaoda pans out and will affect CMZ as a result:
http://www.bloomberg.com/news/2011-09-28...aring.html

(vested)