Kerrisdale Capital Still Claims China Education Alliance (CEU) Is a Fraud
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Analysts at Kerrisdale Capital said the confirmation from China Education Alliance, Inc. (NYSE: CEU) of its bank balances "in no way vindicate the company of fraud."
The firm states, "We're not sure about the specific details of how China Education Alliance is able to show Sherb & Co. cash balances that match SEC filings. But we believe that many companies in China can find a way to show inflated bank balances to their auditors, and satisfy "confirmation procedures."
Kerrisdale stands by their original report that the company is defrauding investors and fabricated SEC statements, saying the company does not have business assets that can generate the revenue and net income that it reports in its SEC filings.
Shares of CEU are up 13.5 percent today after confirming its bank balances.
The stocks fell 33 percent on November 29 following the negative report from Kerrisdale.
The firm states, "We're not sure about the specific details of how China Education Alliance is able to show Sherb & Co. cash balances that match SEC filings. But we believe that many companies in China can find a way to show inflated bank balances to their auditors, and satisfy "confirmation procedures."
Kerrisdale stands by their original report that the company is defrauding investors and fabricated SEC statements, saying the company does not have business assets that can generate the revenue and net income that it reports in its SEC filings.
Shares of CEU are up 13.5 percent today after confirming its bank balances.
The stocks fell 33 percent on November 29 following the negative report from Kerrisdale.
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