April 2, a document filed with the Securities and Exchange Commission in the Swiss fortunate coffee Show:
During the second quarter of 2019 to the fourth quarter, the company's chief operating officer, his imagination up to 22 million fraudulent transactions.
That night company's share price plunged 75.57%.
Hong Kong stocks listed on the second day of China Auto Rental also announced the suspension fell more than 50%, the largest shareholder of both companies is the same person.
01
As early as the end of January this year, the well-known short-seller Muddy Waters had been publicly received an anonymous report.
Author employs more than a thousand full-time employees, 981 stores Xing Rui monitoring passenger flow.
The report shows that 2019 third quarter and fourth quarter, daily sales per store were overstated at least 69% and 88%.
Ironically, the Swiss fortunate February was also a tough fight back Muddy Waters: Department said the false accusations.
The admit I did not expect yesterday.
Fraud fraud such an event occurs, I think the pace is too fast early Swiss fortunately not unrelated.
02
Swiss fortunate From its inception, is dressed in the cloak of Internet companies to operate.
Subsidies for low-cost financing → → → rapid expansion of the scale capture the market pushed valuations → continue financing, IPO in May 2019, created the concept stocks recorded the fastest on the market.
Fortunately, however, the Swiss are not really Internet companies.
Even if the user only in its home app orders, does not change the nature of its food and beverage industry.
Fortunately, every Swiss to expand the scale, open a new store every, every batch of acquiring new users, you need to rent, purchase of raw materials, equipment, hiring new employees.
This is typical of heavy asset management, and the Internet industry is asset-light.
In order to maintain the appearance of fast-growing companies, fraud seems to be an easy option.
03
Fortunately, Swiss investors misfortune.
Even professional investors strong stock picking ability, in the face of fraud can not do anything. Earnings data provided are false, but also how the election?
For ordinary investors, the underlying security or index funds.
Index funds hold a basket of stocks, stock picking is not required to read financial statements, not because of individual stocks appear black swan event produced irreparable damage.
Finally mention the Internet in China 50 index, no Swiss fortunate coffee stock.
Index funds invest in almost interconnection friends do not have to worry too much, as said earlier, the Swiss Fortunately, nature is not the Internet companies.
Its market value is too small, not to the S & P 500 and NASDAQ 100 index.
——————————
Welcome to public concern number: fiscal and financial wanted
Focus on index fund investment