The optimism from the writer, Errol Oh, stems from the fact that Silver Bird did announce its (otherwise horrific) results on time. But if the results were not announced on time, that would also have been a huge red flag.
And another assumption of Oh: "it may well be because the auditors are mindful of the fact that their work is subject to the scrutiny of the Audit Oversight Board (AOB)".
My guess at this moment is that Silver Bird simply ran out of money, and alarm bells started to go off, not really a surprise. Not sure if the AOB had anything to do with that.
Was there any red flag that investors, auditors or authorities might have foreseen that troubles at Silver Bird were brewing?
For the readers of Where is ze Moola's blog it should not have come as a surprise what has happened, the huge amount of articles about Silver Bird were literally littered with red flags. But apparently they stayed unnoticed with many, including the authorities.
No matter how I look at what has happened, I don't see any silver lining at all, I only see very dark clouds for Silver Bird and its shareholders.
To me Moola's blog is Malaysia's version of David Webb. I will check his blog before I invest. If the name doesn't appear I will feel safe.
ReplyDeleteI agree, and it is really a pitty that the authorities do not pay more attention to his writings. He has been proven right several times in a very decisive manner. He has warend about more companies (some China listed companies, some companies with very high receivables, etc) which have not yet gone down, I think he will again be proven right.
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