Five weeks ago Glaucus Research launched its attack on Prince Frog. Trading in the shares of the latter company was halted and Prince Frog prepared an answer to the allegations. Only now the official reply was
published. The time it took to respond is worrisome long, normal would be a reply within one week.
The reaction of the market was not good:
Although quite a bit of answers are given (in total 24 pages), doubts remain. I think Prince Frog could have been more specific in several cases.
Some reactions:
Bloomberg
Wall Street Journal
I expect Glaucus to respond soon.
I expect the sell side analyst who works for the counter will write some craps to support it!
ReplyDeleteWhy will you assume that it will be definitely be "some craps" if someone (analyst or otherwise) comes up in support of Prince Frog.
DeleteMy understanding about the 5 weeks delay is that the management needed to get the green light from HKSE before they released their report. I cannot ascertain if that is a valid reason for the time lag.
While questions still remain, I feel that the rebuttal from Prince Frog is probably one of the better ones compare to some of the other companies under siege thur far.
Keep in mind that short sellers' reports are also skewed towards proving their points. It will be very difficult for most of us to ascertain the true situation in the short term so it might be wise to keep an open mind in assessing the company as both sides make their points rather then assuming that one side is already guilty.