Xinhua Finance Media XFML Update
By stlplace on May 20, 2007 in Stocks, China
I really don’t want to talk this stock any more. But thought I may shed some light on this company’ new controversy, here is an article from market watch. To put long words short, Xinhua Finance Media Limited, failed to mention its CFO was under SEC investigation in its IPO prospectus. I don’t know legal side of the things, it seems they failed at least the investors. Similar things can be said for its underwriters?
Separately, I received their paper prospectus in the mail a while ago. This thing is about 400 pages, about 2 inches thick. I don’t know why they send this in the paper (investors can always read it online). Maybe they could boost their printing division’s revenue a bit by doing this.
I haven’t followed its earnings or business after I sold it shortly after IPO (took a loss). I would not recommend ”buying at its weakness” at this time. There are much better companies in China’s media and advertisement industries. When I read the Caijing today, I saw a JP Morgan (the underwriter) guy compared XFML with Focus Media.
I don’t know what to say.
