HB Global: delay in audited accounts

I have written before about HB Global.

Yesterday the company announced:


"The Board of Directors of HB wishes to announce that the issuance of AFS 2013 will be delayed as Messrs. UHY Lee Seng Chan & Co., the new external auditors of the Company was just appointed on 21 April 2014 and the audit is currently still in progress. The Company wishes to provide more time for the external auditors to complete the AFS 2013 and is working closely with the external auditors to finalise the audit expeditiously. The Company expects to submit its AFS 2013 on or before 30 June 2014."


Delaying the accounts is a large red flag. The company knew before exactly the deadline for the audited accounts. The company risks that Bursa will suspend trading in its shares.

Jack Ma, Alibaba and the "Crocodile in the Yangtze" (2)

I wrote before about "Crocodile in the Yangtze".

Porter Erisman, the maker of the movie, commented on this blog:


Ummmm…guys…would prefer you actually buy my film on Vimeo! Not only is it legal, but it's HD! I'm glad you enjoyed the film though - thanks for the compliments! Porter Erisman, Director of Crocodile in the Yangtze.

Here's the link :-)

https://vimeo.com/ondemand/crocodileintheyangtze


Official release date is May 28, 2014. The movie has won many awards, I highly recommend it.

Maemode: accurate predictions by Ze Moola, but why did nobody notice? (3)

I wrote twice about Maemode (7075)

Maemode: accurate predictions by Ze Moola, but why did nobody notice?

Maemode: accurate predictions by Ze Moola, but why did nobody notice? (2)

From the latter:

"The Company expects to submit its AFS (Audited Financial Statements) 2013 within six (6) months from the date of this announcement."

That announcement was made on September 25, 2013.

We are now more than seven months further, and the company still has not issued its Audited Financial Statements.

I am scared the AFS might never be issued. My fear comes from the following recent announcement:

Bursa and/or SC should chase the company for its financial statements. A forensic audit is most likely warranted, given the events that have occurred. Minority investors (who must have lost a lot of money on this counter) and interested observers deserve an explanation, what really has happened. The money that has been lost won't come back. But at least, some lessons will be learned, for all involved. And if there is proof of any wrongdoing, then the authorities should take appropriate action.

What is happening to the Chinese Renminbi?

The Chinese Renminbi used to be a "one-way bet", the currency slowly but surely appreciating against the USD.

And that sounded quite logically, given that the Chinese economy is growing the fastest of all the major economies in the world.

But that pattern seems to be broken recently:

Since reaching 6.05 in January 2014, the Renminbi has sharply weakened, to the current level of 6.26.

From ZeroHedge website:

"Someone Is Betting That The Chinese Currency Collapses By The End Of 2014?"

here is CLSA's Russel Napier on what the long-term fate of the Renminbi will be:

“Mercantilist alchemy transmutes China’s external surpluses into foreign exchange reserves and renminbi. But with capital outflows from China at record highs, those surpluses are only maintained due to its citizens’ foreign-currency borrowing. Bank-reserve and M2 growth are already near historical lows and are driving tighter monetary policy. This will lead to severe credit-quality issues and force the authorities to accept a credit crunch or opt for a major devaluation of the renminbi. They will do the latter; and despite five years of QE, the world will get deflation anyway.”