08-01-2013, 07:10 AM
I skimmed through the report. Its got a lot of problems to it. Poor journalism and even worse understanding of finance and accounting.
1. neither of the authors have formal backgrounds in finance or accounting. http://www.jcapitalresearch.com/about-us.html stevenson-yang is a journalist by trade and Kroeber is fresh out of undergrad with a major in history. They mess up on their understanding of term deposits = cash and how AR/DSO's rise with fast growing revenues. Not to mention trying to value a tech company on a trailing P/E basis.. Shoddy work.
2. Their estimates of the chinese markets seem way smaller than any other research report you can see on google. just google for china mobile internet or smart phone. Only 100m mobile internet users in china in 2011? Seriously?
3. A lot of their evidence is based on interviews with employees. Uh.. I'm sure a low level employee knows exactly how the company is structured, the revenues per division and the overall strategic rational for transactions/partnership, etc.
Truth be told, I hope this report pushes the stock down for a few days so I can add more.
1. neither of the authors have formal backgrounds in finance or accounting. http://www.jcapitalresearch.com/about-us.html stevenson-yang is a journalist by trade and Kroeber is fresh out of undergrad with a major in history. They mess up on their understanding of term deposits = cash and how AR/DSO's rise with fast growing revenues. Not to mention trying to value a tech company on a trailing P/E basis.. Shoddy work.
2. Their estimates of the chinese markets seem way smaller than any other research report you can see on google. just google for china mobile internet or smart phone. Only 100m mobile internet users in china in 2011? Seriously?
3. A lot of their evidence is based on interviews with employees. Uh.. I'm sure a low level employee knows exactly how the company is structured, the revenues per division and the overall strategic rational for transactions/partnership, etc.
Truth be told, I hope this report pushes the stock down for a few days so I can add more.