Prince Frog Falls by Most on Record After Short Seller Glaucus Report

October 16, 2013 Leave a comment

Prince Frog Falls by Most on Record After Short Seller Report

By Vinicy Chan – Oct 15, 2013

Prince Frog International Holdings Ltd. (1259) plunged by the most on record after short-seller Glaucus Research Group questioned the company’s sales and branded the baby-care products maker a “strong sell.” Prince Frog shares were halted in Hong Kong trading today after dropping as much as 26 percent to HK$4.66, headed for the biggest decline since its July 2011 listing. The Chinese government’s tax records indicate Prince Frog’s net income is “a fraction of reported figures,” Glaucus said while initiating coverage of the shares at “strong sell.” Queenie Hung from Wonderful Sky Financial Group, Prince Frog’s public relations company, declined to immediately comment. The company, based in southern China’s Fujian province, will issue a statement to the Hong Kong Stock Exchange later today, she said. China Minzhong Food Corp. (MINZ), China Metal Recycling Holdings Ltd. and China Medical Technologies Inc. have each separately been the focus of reports by Glaucus. Liquidators were appointed to China Metal in July and China Medical filed for Chapter 15 foreign-firm bankruptcy protection in New York last year. Ten of the 11 analysts covering Prince Frog recommend investors buy the stock, while one rates the stock a hold, Bloomberg data show. The stock is still up 43 percent so far this year, compared with a 2.6 percent gain for the Hang Seng Index.

To contact the reporter on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net

Filed under Investing Process, Macro Trends

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