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

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

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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