Monday, September 26, 2011

Hackers Dive Into Securities Analysis

(In)Famous hacking organization Anonymous is branching out into the world of securities analysis starting with their report on Chinese agricultural company Chaoda. Their public equity research arm is called Anonymous Analytics and their slogan is "Acquiring information through unconventional means." What their unconventional means are isn't explained but one can guess they incorporate their noteworthy hacking skills to assist in their research. I found this very interesting and was intrigued to read their report. All in all, I thought it was convincing, logical, and even entertaining. Reading a research report from a group that doesn't follow any securities industry standards and has no care for political correctness is refreshing and much more enjoyable. One may argue that they have no credibility or moral standards, but you can't argue with facts which is what they present in addition to their opinions.

Their thesis is that Chaoda Modern Agriculture, an HK$ 8.5 billion market cap company listed on the Hong Kong Exchange, is a fraud and will likely be delisted once the exchange investigates the company. The situation is very similar to the Sino-Forest case from early June. The report also implicates a shady marketing firm and perhaps some ignorant Ivy Leaguers. The report is a relatively easy read even for those not finance literate. Read and see if you think the company is a fraud or at least a terrible investment:

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