Sunday, 16 October 2011

Chaoda: the most useless call of the day.

http://brontecapital.blogspot.com/2011/10/going-one-up-on-jeff-matthews-with.html

"Today I received a copy of Felix Fok's latest piece on Chaoda Modern Agriculture. This is from JiAsia - in other words from Societe Generale. To quote:
Ji Asia is terminating coverage of Chaoda Modern Agriculture (Holdings) (682 HK, HK$1.10, Ji BUY, Target HK$10.50).
The price on my screen is 55c but it is not trading any more.

The reason stated by Felix Fok is "following a realignment of resources within the team".

Chaoda is suspended for a reason: it is almost certainly a grotesque fraud.

The buy was a bad call. The dropping coverage: that was clearly the most useless call of the day."



JI-Asia is an independent research house, partnering Societe Generale:

http://www.japaninvest.co.uk/x/default.html

For research houses and brokers it is apparently hard to digest a wrong call , they rather let the recommendation "disappear" than be honest about it.

Previous blogs about Chaoda can be found here:

http://cgmalaysia.blogspot.com/search/label/chaoda

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