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08-06-2017, 10:27 AM
(06-06-2017, 06:01 PM)cyclone Wrote: Carson Block's Mystery Short Target Roils Hong Kong Stocks
by Sofia Horta E Costa and Kana Nishizawa
June 6, 2017, 11:37 AM GMT+8 Updated on June 6, 2017, 4:57 PM GMT+8
Where will Carson Block strike next?
For traders in Hong Kong, it’s a suddenly pressing question. Block, the short-selling founder of Muddy Waters, told Bloomberg News he identified a new target in the former British colony and will reveal the company’s name at the Sohn Hong Kong Conference just after 2 p.m. local time on Wednesday.
His comments triggered an immediate flurry of speculation in the city’s $4.6 trillion equity market. The Hang Seng Composite Index dipped as he spoke on television, with stocks including Tongda Group Holdings Ltd., Man Wah Holdings Ltd. and Sunny Optical Technology Group Co. sliding on concern they could be in the short seller’s crosshairs.
“Some of the mid- and small-caps are falling quite a lot as Muddy Waters may have frightened some investors or speculators,” said Sam Chi Yung, a senior strategist at South China Financial Holdings Ltd. in Hong Kong. “They’re afraid that the stock they’re holding will be the next target.”
More details in https://www.bloomberg.com/news/articles/...y-j3l0l5v0
Just based on information from the article itself, it is interesting to see why Man Wah was 1 of the candidates to be of "concern to be on the short seller's crosshairs" 2 days ago. Based on Bloomberg's Top10 short interest and short interest increase, it did not appear in either. So what was the reason why Man Wah was suspected in the first place? (and subsequently later confirmed to be on MW's crosshair 1 day later) It doesn't seem to have exorbitant margins to start with (although the 10-18% NPM are quite impressive).
Man Wah's last 5 years financial highlight:
http://manwah.todayir.com/html/ir.php