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PR Newswire
14-06-2018, 05:31 PM
Short seller Carson Block compares hot China stock Tal Education to Enron; shares dive
Evelyn Cheng
June 14, 2018
Shares of Chinese after-school operator Tal Education plunged Wednesday after short seller Carson Block compared practices at the company to the financial fraud at Enron.
The U.S.-listed shares of Tal closed nearly 10 percent lower after briefly falling more than 15 percent in morning trading. As of Wednesday's close, the stock was up almost 105 percent over the last 12 months.
Estimates indicate Tal has overstated net income by at least 43.6 percent for the last two fiscal years, Block's firm Muddy Waters said in a release Wednesday.
"TAL combines the old school China fraud playbook of simply penciling in more favorable numbers with the more sophisticated asset parking fraud of Enron," the short seller added in a report.
More details in https://www.cnbc.com/2018/06/13/short-se...-dive.html
Evelyn Cheng
June 14, 2018
Shares of Chinese after-school operator Tal Education plunged Wednesday after short seller Carson Block compared practices at the company to the financial fraud at Enron.
The U.S.-listed shares of Tal closed nearly 10 percent lower after briefly falling more than 15 percent in morning trading. As of Wednesday's close, the stock was up almost 105 percent over the last 12 months.
Estimates indicate Tal has overstated net income by at least 43.6 percent for the last two fiscal years, Block's firm Muddy Waters said in a release Wednesday.
"TAL combines the old school China fraud playbook of simply penciling in more favorable numbers with the more sophisticated asset parking fraud of Enron," the short seller added in a report.
More details in https://www.cnbc.com/2018/06/13/short-se...-dive.html
Specuvestor: Asset - Business - Structure.