Wednesday, June 8, 2011

How to find the subsidiaries in Chinese? A Cogo update.

Cogo showing off their hi-tech merchandise with a flashy site...I suggest everyone to check it out just for the great music.

Cogo is such a gem. It has to be one of the most textbook examples of a fraud: cash flows that don't reconcile with net income, paying large amounts of money for acquisitions well above goodwill, diluting shares, and talking up hot technologies like "high speed rail", "3.0", "smart phones", "tablets" and the "smart system." To top it all off, it's an American listed Chinese RTO that you can still get a borrow on.

So I am obsessed with Cogo*. I have written up about it here and (DELETED) has also written a great report up (DELETED) . I am even in the process of hiring people in Taiwan to do some research for me.

Yet, I have a problem and the problem is, I can't give my Taiwanese researchers much work if I can't get the Chinese names for all these subsidiaries. I think the subsidiaries is key to finding the smoking gun with this likely fraud since they've been acquired with so much goodwill.
  • Viewtran Technologies
  • Shanghai  E&T
  • Comtech Broadband
  • Keen Awards
  • Longrise 
  • Mega Smart Group
  • MDC Technologies 
  • **There are subsidiaries than this

So does anyone have any idea on how I can find the Chinese names for the subsidiaries? I have tried contacting the management which didn't get me anywhere, and I have tried e-mailing Wayne Ho the person in charge of Investor Relations but he no longer returns my e-mails and his phone number goes directly to his voice mail and hasn't called me back.  

Here is our boy Jeffery (JingWei) Kang, the CEO of Cogo, on Bloomberg. It would have been great if they asked him a question about their funky accounting or overuse of goodwill in acquisitions, but hey, I am just an ESL teacher...what do I know? At least they asked, a question I've been wondering. What exactly does Cogo do?

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